Multiple Choice
The 'hedge ratio' refers to:
A) the price in the spot market divided by the price in the derivatives market.
B) the number of futures contracts needed to equate the gain on a futures position and the loss on the exposure.
C) the difference between a derivative position and the underlying fixed- rate loan.
D) the contract rate in a FRA less the benchmark rate.
Correct Answer:
Verified
Correct Answer:
Verified
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