menu-iconExamlexExamLexServices

Discover

Ask a Question
  1. All Topics
  2. Topic
    Business
  3. Study Set
    Money and Capital Markets
  4. Exam
    Exam 9: Interest-Rate Forecasting and Hedging: Swaps, Financial Futures, and Options
  5. Question
    A Perfect Hedge Contracts Away All Risk and Creates a Situation
Solved

A Perfect Hedge Contracts Away All Risk and Creates a Situation

Question 24

Question 24

True/False

A perfect hedge contracts away all risk and creates a situation where any change in the market price is exactly offset by a profit or loss on the futures contract.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q19: What risks and costs are inherent in

Q20: The principal amount or unit for the

Q21: The basic trading unit for Treasury bonds

Q22: As the global financial system becomes "smaller"<br>through

Q23: Futures contracts are daily "marked to market"<br>which

Q25: Explain the meaning of the following terms:

Q26: Which of the following is a true

Q27: Define and explain the use of the

Q28: Explain the uses of the following instruments:

Q29: Interest-rate swaps necessarily reduce credit risk.

Examlex

ExamLex

About UsContact UsPerks CenterHomeschoolingTest Prep

Work With Us

Campus RepresentativeInfluencers

Links

FaqPricingChrome Extension

Download The App

Get App StoreGet Google Play

Policies

Privacy PolicyTerms of ServiceHonor CodeCommunity Guidelines

Scan To Download

qr-code

Copyright © (2025) ExamLex LLC.

Privacy PolicyTerms Of ServiceHonor CodeCommunity Guidelines