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CFA Level 1
Derivatives

Primary Use of Derivatives

Very Easy Derivative Markets And Instruments Uses Of Derivatives

Derivatives are financial instruments whose value is derived from an underlying asset. They can be used for various purposes in financial markets. Understanding the uses of derivatives is crucial for investors and financial analysts. One common use of derivatives is to hedge against price movements of the underlying assets.

Which of the following represents a primary use of derivatives?

Hint

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