In reference to the derivatives market,a "speculator"

Question

Quizplus · Accepted Answer

A speculator in the derivatives market aims to profit from changes in the futures price by taking positions that may be risky but have a potential for high returns. They do not necessarily seek to hedge or lock in prices, as hedgers do (choice B). They also engage in a zero-sum game, where their gains or losses are equal and opposite to those of other traders in the market (choice C). Therefore, the correct answer is A.

In Reference to the Derivatives Market,a "Speculator