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What is a speculator’s main objective? A. To reduce the risk resulting from their natural position...

What is a speculator’s main objective?

A. To reduce the risk resulting from their natural position

B. Taking advantage of price discrepancies to make a risk-less profit

C. To gain profits by increasing their financial risk

D. To regulate financial market’s participants

E. None of the above

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Answer

A speculator's main objective is:

Taking advantage of price discrepancies to make a risk-less profit.

Note: A speculator is a short term investor, generally sell the investment when the price of securities go up and purchase the securities at lower price in order to earn a risk less profit.

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