Betting on a future outcome in order to profit from it is called:
ACirculating
BSpeculating
CStipulating
DSimulating
Answer & Solution
Correct answer: B. Speculating
1. No existing exposure is being reduced here.
2. The position is taken deliberately for gain.
3. That is speculating.
_Source: OpenStax Principles of Finance 2e, Chapter 20, Risk Management and the Financial Manager._
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