- CFA Exams
- CFA Level I Exam
- Topic 7. Derivatives
- Learning Module 3. Derivative Benefits, Risks, and Issuer and Investor Uses
- Subject 2. Issuer and Investor Use of Derivatives
CFA Practice Question
Which is NOT a typical use of derivatives for an investor?
B. Replicate a cash market strategy.
C. Hedge a fund's value against adverse movements in underlyings.
A. Modify portfolio exposures without transacting in the cash market.
B. Replicate a cash market strategy.
C. Hedge a fund's value against adverse movements in underlyings.
Correct Answer: None
All are possible goals for an investor.
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