Why do businesses most often use derivatives as they can be used as

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Why do businesses most often use derivatives as they can be used as speculative instruments?this question is part of security analysis and portfolio management (sapm)   quiz 1

John Smith · Accepted Answer

1. Hedge.Firms may use forward contracts and futures to protect against currency fluctuations or changes in commodity prices. Interest-rate options help companies control financing costs.

Why do businesses most often use derivatives as they can be used as speculative instruments?

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