Those who invest in derivative instruments that increase rather than reduce risk are known as:
A) option traders.
B) futures traders.
C) hedgers.
D) speculators.

Question

Quizplus · Accepted Answer

Those who invest in derivative instruments with the intention of increasing risk instead of reducing it are known as speculators. Option and futures traders can use these instruments to either hedge or speculate, while hedgers use them solely for risk reduction purposes.

Those Who Invest in Derivative Instruments That Increase Rather Than