Solved

Which of the Following Statements Is True

Question 3

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 naïve hedge.
D) All of the listed options are correct.

Correct Answer:

verifed

Verified

Related Questions