Describe two useful purposes served by speculators in derivatives markets.
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Q4: Forward transactions
A)provide little risk sharing.
B)are very liquid.
C)have
Q10: The most important derivative instruments are
A) futures,
Q11: In derivative markets, trade takes place in
A)assets
Q15: Derivative instruments are
A)assets such as bonds or
Q16: How does hedging affect the flow of
Q17: If insurance is available on an activity
A)
Q18: Suppose you are a manager for a
Q19: Investors who buy and sell oil derivatives
Q44: Profits from speculation arise because of
A)the spread
Q57: Hedgers are primarily interested in
A)betting on anticipated
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