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Which of the Following Statements Is True

Question 51

Multiple Choice

Which of the following statements is true?


A) If a cash asset is hedged on a dollar for dollar basis with a forward or futures contract, we refer to this hedge as a dollar hedge.
B) If a cash asset is hedged on a dollar for dollar basis with a forward or futures contract, we refer to this hedge as a plain hedge.
C) If a cash asset is hedged on a dollar for dollar basis with a forward or futures contract, we refer to this hedge as a naive hedge.
D) All of the listed options are correct.

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