Those who invest in derivative instruments with the purpose of increasing rather than decreasing risk are known as:
A) option traders.
B) futures traders.
C) hedgers.
D)speculators.

Question

Quizplus · Accepted Answer

Speculators invest in derivative instruments with the purpose of increasing risk and potentially earning higher profits. Option and futures traders may use derivatives for hedging purposes, while hedgers use derivatives to mitigate risk.

Those Who Invest in Derivative Instruments with the Purpose of Increasing