Multiple Choice
A key feature of the futures market that allows the hedging process to transfer risk effectively is the fact that:
A) Prices in the spot market are not generally correlated with prices in the futures market
B) Prices in the spot market are generally correlated with prices in the futures market
C) Price standardization
D) Asset standardization
E) None of the above
Correct Answer:
Verified
Correct Answer:
Verified
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