To profit from a rise in the CAC 40 index with leverage, a trader could buy calls on the CAC 40. Options (calls) allow controlling significant index exposure with an initial investment limited to the option premium, thereby providing leverage. This is illustrated in the text through the example of CAC 40 futures, but calls are also mentioned as an alternative for directional speculation.

To profit from high volatility regardless of direction, a trader could use a straddle strategy, which involves simultaneously buying a call and a put with the same strike price. This strategy is mentioned in the text as an example of speculating on volatility itself.

A company with variable-rate debt concerned about rising policy rates would use an interest rate swap. By entering into a 'pay fixed / receive Euribor' swap, it transforms its variable exposure into known fixed-rate debt. This mechanism is described in the text as a concrete example of interest rate risk hedging.

A cereal farmer's use of futures is primarily aimed at hedging his price risk. By selling wheat futures, he locks in a price for his harvest several months before the harvest, thereby protecting himself against a potential price decline. This hedging strategy is a concrete example of using derivatives to reduce exposure to a pre-existing market risk, as mentioned in the text with the Airbus example and its foreign exchange forwards.

Leverage amplifies both gains and losses. For example, a CAC 40 future controls significant exposure with a limited initial margin deposit, which can lead to substantial gains but equally significant losses. The text explicitly states that this effect considerably amplifies potential gains but also losses, making the statement false.

Hedging involves reducing or eliminating a pre-existing market risk exposure. For example, Airbus uses foreign exchange forwards to neutralize its structural currency risk, and an exporting SME hedges its anticipated revenue. Thus, hedging always requires a pre-existing risk exposure, making the statement true.

Cash-and-carry arbitrage is a strategy that exploits unjustified pricing discrepancies between the future price and the spot price of an asset, adjusted for the theoretical cost of carry (interest rate minus dividends). For example, if the CAC 40 future price diverges significantly from the spot price plus the cost of carry, an arbitrageur can buy the index on the spot market and sell the future to capture this spread. This strategy contributes to market efficiency by quickly correcting pricing anomalies.

The examples provided in the text illustrate different use cases for derivative products. Airbus using forwards to hedge its currency risk is an example of hedging. A trader buying calls on the CAC 40 to speculate on a rise is an example of speculation. An arbitrageur executing a cash-and-carry is an example of arbitrage. These categories are defined by the three main economic motivations mentioned in the text.