A Forward Contract Hedge Is Very Similar to a Futures

question 38

Multiple Choice

A forward contract hedge is very similar to a futures contract hedge, except that ____ contracts are commonly used for ____ transactions.

• A) forward; small
• B) futures; large
• C) forward; large
• D) None of these are correct.

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Definitions:

Coerced

Being forced into doing something against one's will or without one's consent.

Remedial Measures

actions taken to correct or improve a situation or a behavior.

Common Ground

Shared interests, beliefs, or knowledge that make communication and understanding easier between people.

Generalities

Statements or ideas that are broad and vague, lacking specific detail or focus on particular instances.