A) Arbitrage
B) Long
C) Short
D) Hedging
E) Spread
Correct Answer: D
Solution :
Speculation is the act of trading in an asset, or conducting a financial transaction, that has a significant risk of losing most or all of the initial outlay, in expectation of a substantial gain. It is opposite of Hedging which is a risk management strategy used in limiting or offsetting probability of loss from fluctuations in the prices of commodities, currencies, or securities.
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