Which one of the following statements concerning financial futures is correct? A

ID: 2797404 • Letter: W

Question

Which one of the following statements concerning financial futures is correct?

A) Speculators in the currency markets are generally firms involved with international trading of goods and services.

B) Portfolio managers wishing to provide downside protection to their portfolios are the primary speculators in the financial futures markets.

C) Investors who simply play in the futures market with the hope of realizing capital gains are referred to as the hedgers.

D) International trade often is accompanied by currency hedging via financial futures.

D) International trade often is accompanied by currency hedging via financial futures.

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