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    Business
  3. Study Set
    Derivatives and Risk Management Study Set 2
  4. Exam
    Exam 10: Forward and Futures Hedging,spread,and Target Strategies
  5. Question
    A Hedge That Involves the Use of a Futures Contract
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A Hedge That Involves the Use of a Futures Contract

Question 1

Question 1

True/False

A hedge that involves the use of a futures contract on an instrument that is different from the instrument being hedged is called a cross hedge.

Correct Answer:

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Related Questions

Q2: Based on the price sensitivity hedge ratio,if

Q3: Which of the following statements about the

Q4: The liquidity of the futures contract used

Q5: Find the optimal stock index futures hedge

Q6: Suppose you buy an asset at $50

Q7: Though a cross hedge has somewhat higher

Q8: The price sensitivity hedge ratio would be

Q9: In which of the following situations would

Q10: What happens to the basis through the

Q11: The duration of the futures contract used

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