What Is Meant by Horizontal Offset

Multiple Choice

What is meant by horizontal offset?

A) The deduction of capital charges because long and short positions of the same maturities have durations that more than perfectly hedge each other.
B) The assignment of additional capital charges because long and short positions of the same maturities have durations that do not perfectly hedge each other.
C) The deduction of additional capital because long and short positions of different maturities more than perfectly hedge each other.
D) The assignment of additional capital charges because long and short positions of different maturities do not perfectly hedge each other.