The most common reason that corporate companies use the futures and options markets is:
A) to hedge risk.
B) to take risk.
C) to make deposits.
D) none of the above.

Question

Quizplus · Accepted Answer

Corporate companies typically use futures and options markets as a way to hedge against risk, such as changes in commodity prices or interest rates. This allows them to protect themselves from potential losses and stabilize their financial position.

The Most Common Reason That Corporate Companies Use the Futures