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Which of the following statements is correct? (More than one answer is possible.)
Options:
1) A speculator owns or plans to buy the underlying asset, a hedger does not.
2) A hedger owns or planes to buy the underlying asset, a speculator does not.
3) An airline buying long oil futures is an example of hedging.
4) A politician buying cattle futures is an example of speculation.
Answer & Explanation
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