Match the column

List I (Trader)	List II (Function/Activity)
A. Hedger	I. Buying and selling shares quickly
B. Speculator	II. Reducing investment Risk
C. Arbitrageur	III. Taking increased Risk willingly
D. Scalper	IV. Taking advantage of the mismatch of the prices in two markets

Choose the correct answer from the options given below:

Correct option is C

The correct matches between List I (Trader) and List II (Function/Activity) are:
· Hedger (A-II): A hedger seeks to reduce investment risk by using financial instruments such as futures or options to protect against price fluctuations.
· Speculator (B-III): A speculator is willing to take increased risk in anticipation of higher returns by predicting future price movements.
· Arbitrageur (C-IV): An arbitrageur takes advantage of the mismatch of prices in two markets by buying in one market and selling in another for a profit.
· Scalper (D-I): A scalper engages in buying and selling shares quickly to take advantage of small price fluctuations and make profits in short timeframes.
Information Booster
· Hedger (A-II): Hedgers aim to mitigate financial risks, typically in commodity or financial markets. For example, a farmer may use futures contracts to lock in the price of crops to avoid losses due to market fluctuations.
· Speculator (B-III): Speculators often trade in high-risk financial instruments such as options and futures, hoping to benefit from price volatility. For example, a trader buying shares of a startup anticipates high returns but risks losing the investment if the business fails.
· Arbitrageur (C-IV): Arbitrageurs exploit price differences between two or more markets. For example, they may buy a stock in one country at a lower price and sell it in another country where the price is higher, earning a risk-free profit.
Scalper (D-I): Scalping is a day-trading strategy focusing on quick trades. Scalpers often hold positions for a few seconds or minutes, aiming to profit from small price movements in stocks, currencies, or commodities.