Multiple Choice
Regarding the true hedging cost,if the bid-ask spread widens for more distant future contracts,the cost of forward hedging
A) decreases with the maturity of the contract.
B) remains constant with the maturity of the contract.
C) increases with the maturity of the contract.
D) has no direct relationship to the longer term.
Correct Answer:
Verified
Correct Answer:
Verified
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