End users differ from dealers in that the latter engage in risk management transactions for the purpose of earning a profit off the spread between their buying and selling prices,while the former enter into transactions to manage specific risks.

Question

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End users and dealers have different motivations for engaging in risk management transactions. Dealers aim to make a profit off the spread between buying and selling prices, while end users have a specific risk to manage through their transactions.

End Users Differ from Dealers in That the Latter Engage