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A Futures Instrument,such as a T-Bill,can Be Used to Hedge

Question 2

Multiple Choice

A futures instrument,such as a T-bill,can be used to hedge a cash or a spot instrument such as the prime rate,where the two instruments are not perfectly correlated.What type of hedge is this referred to as?


A) A perfect hedge
B) A straight hedge
C) A cross hedge
D) None of the above

Correct Answer:

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