People who speculate among price differences in different futures markets are called
A) hedgers.
B) spreaders.
C) basis riskers.
D) bungee jumpers.

Question

Quizplus · Accepted Answer

People who speculate among price differences in different futures markets are called spreaders. Hedgers use futures markets to protect against potential price movements in the underlying asset, basis riskers are those who are exposed to basis risk due to imperfect correlation between the futures contract and the underlying asset, and bungee jumpers are not related to futures trading.

People Who Speculate Among Price Differences in Different Futures Markets