In the futures market, ________ transfer price risk, and _________ absorb price risk.
A) hedgers; hedgers
B) hedgers; speculators
C) speculators; speculators
D) speculators; hedgers
E) hedgers and speculators do both.

Question

Quizplus · Accepted Answer

Hedgers use futures contracts to protect themselves against price movements in the underlying asset, effectively transferring price risk. Speculators, on the other hand, willingly accept this risk with the hope of making a profit from price movements.

In the Futures Market, ________ Transfer Price Risk, and _________

In the Futures Market, Transfer Price Risk, and _