CFA Practice Question

There are 275 practice questions for this study session.

CFA Practice Question

Hedgers in the futures market usually ______

A. only trade in the futures market.
B. only trade in the cash market.
C. trade in both the cash and futures markets.
Correct Answer: C

User Contributed Comments 2

User Comment
ibrahim18 How? They are supposed to trade just in the futures market
mcbreatz Key word in this question is hedgers. Hedgers have a risky position such as wheat prices that they want to offset with an opposite futures position to minimize the downside of a price swing.
You need to log in first to add your comment.