Sort Market Participant Motives

Sort each derivative use case by the participant's objective. Hedging Speculation Dealing or market making Airline buys fuel calls to cap next quarter's jet fuel cost Exporter sells currency forward to stabilize a foreign-currency receivable Macro fund buys rate futures because it expects yields to fall Investor buys out-of-the-money calls for a possible earnings jump Bank prices a swap to a borrower and offsets the risk in the interdealer market Options market maker quotes both bid and offer while managing inventory Greeks Reducing risk Taking risk Intermediating risk

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