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Example correct for derivatives market

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Reference no: EM133003109

Is the below example correct for Derivatives Market? Would you add any other details?

For example, a baker understands that the price of bread will fluctuate and cause a loss or increase in profits. The baker will sign a derivative contract to make an educated guess on the value to make more profits, or just to protect himself from losing profits.

Reference no: EM133003109

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