The Exposure of a Futures Hedge in Which There Is

question 29

Multiple Choice

The exposure of a futures hedge in which there is a match with the underlying position on currency but not on maturity is called a ______.

• A) cross-hedge
• B) delta-cross-hedge
• C) delta-hedge
• D) perfect hedge
• E) None of the above

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Definitions:

Convertible Bond

A type of bond that can be converted into a predetermined number of the issuer's equity shares at certain times during the bond's life, usually at the discretion of the bondholder.

Early Retirement

Choosing to retire before the traditional retirement age, often with eligibility for certain benefits.