- 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
The hedging function of futures markets allows issuers to ______.
II. control risk
III. manage risk
I. reduce risk
II. control risk
III. manage risk
Correct Answer: I, II and III
Issuers seek to reduce risk. The practice of reducing risk may also be referred to as controlling risk or managing risk.
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