In the futures markets,hedgers are mainly interested in:
A) attempting to make a profit by betting on expected price changes.
B) reducing their exposure to risk of price changes.
C) increasing market liquidity.
D) reducing the spread between the bid and ask prices on bonds.

Question

Quizplus · Accepted Answer

Hedgers in futures markets aim to reduce their exposure to potential price changes of underlying assets by locking in a price through a futures contract. This helps them manage their risk and protect against potential losses. Hedgers are not necessarily trying to make a profit in the market and their activities do not necessarily affect market liquidity or spread between bid and ask prices.

In the Futures Markets,hedgers Are Mainly Interested In