Hedging in the commodities market is a strategy primarily used by
A) individual investors with high risk tolerance levels for commodities.
B) institutional investors on behalf of their conservative investors.
C) by producers and processors of commodities.
D) investors looking for short-term capital gains.

Question

Quizplus · Accepted Answer

Hedging in the commodities market is primarily used by producers and processors of commodities to protect against price fluctuations. This strategy helps them manage the risk of price changes in the commodities they produce or use.

Hedging in the Commodities Market Is a Strategy Primarily Used