The process in which derivatives are used to reduce risk exposure is called hedging or speculation

It is called hedging.

Explanation:

Hedging is a financial technique for reducing the risk exposure in financial instruments.  Essentially, a hedge is a financial instrument that is used to offset the risks of adverse price movements in another financial instrument.  The purpose is to reduce to a bearable minimum the adverse effects of risk exposures brought by the initial investment.

a

b

b

a

c

b

d

d

none of these are correct, as they are all sources of american law

a

answer; signaling;