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Basic Question 3 of 18
Hedgers in the futures market usually ______
B. only trade in the cash market.
C. trade in both the cash and futures markets.
A. only trade in the futures market.
B. only trade in the cash market.
C. trade in both the cash and futures markets.
User Contributed Comments 2
| User | Comment |
|---|---|
| ibrahim18 | How? They are supposed to trade just in the futures market |
| mcbreatz | Key word in this question is hedgers. Hedgers have a risky position such as wheat prices that they want to offset with an opposite futures position to minimize the downside of a price swing. |
I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
Learning Outcome Statements
describe classifications of assets and markets
describe the major types of securities, currencies, contracts, commodities, and real assets that trade in organized markets, including their distinguishing characteristics and major subtypes
CFA® 2024 Level I Curriculum, Volume 3, Module 1.