In reference to the derivatives market,a "hedger"

Question

Quizplus · Accepted Answer

A hedger in the derivatives market is an individual or entity that wants to avoid price variations by locking in a purchase price of the underlying asset through a long position in the futures contract or a sales price through a short position. They are not attempting to profit from a change in the futures price, and the derivatives market is not necessarily a zero-sum game, so options A, C, and D are incorrect.

In Reference to the Derivatives Market,a "Hedger