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    Exam 9: Using Derivatives to Manage Interest Rate Risk
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    When the Net Profit on Both the Futures and Cash
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When the Net Profit on Both the Futures and Cash

Question 24

Question 24

Multiple Choice

When the net profit on both the futures and cash position equals zero, this is known as a(n) :


A) cross hedge.
B) perfect hedge.
C) imperfect hedge.
D) basis hedge.
E) return hedge.

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