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    Exam 19: Future Contracts and Forward Rate Agreements
  5. Question
    One of the Problems of Hedging with a Futures Contract
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One of the Problems of Hedging with a Futures Contract

Question 23

Question 23

Multiple Choice

One of the problems of hedging with a futures contract compared with a forward contract is:


A) basis risk.
B) default risk.
C) settlement risk.
D) interest rate risk.

Correct Answer:

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