Question

What is the primary purpose of Financial Derivatives?

a.

Providing steady income

b.

Speculative purposes

c.

Minimizing return on investment

d.

Offering low-risk investment

Posted under IC 89 Management Accounting

Answer: (b).Speculative purposes Explanation:Financial Derivatives, such as Options and Futures, are used for hedging risks as well as speculative purposes.

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Q. What is the primary purpose of Financial Derivatives?
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