One difference between a hedger and a speculator is that the hedger Group of answer choices may not close out his position by taking an opposite position. may have either a profit or a loss. does not have to put up margin. faces a risk without the futures contract.

A hedge is an investment position used to counterbalance prospective losses or benefits from a companion investment.
Stocks, exchange-traded funds, insurance, forward contracts, swaps, options, bets, numerous types of over-the-counter and derivative products, and futures contracts can all be used to create a hedge.

In finance, speculation is the acquisition of an asset with the expectation that it will increase in value in the near future.
Many speculators pay little attention to a security's underlying value and instead focus solely on price changes.

One distinction between a hedger and a speculator is that the hedger bears risk in the absence of a futures contract.

Therefore, one difference between a hedger and a speculator is that the hedger (C) faces a risk without the futures contract.

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Correct question;

One difference between a hedger and a speculator is that the hedger

Group of answer choices

(A) does not have to put up a margin.

(B) may not close out his position by taking an opposite position.

(C) faces a risk without the futures contract.

(D) may have either a profit or a loss.