Reducing the Number of Futures Contracts That Are Needed to Hedge

question 14

True/False

Reducing the number of futures contracts that are needed to hedge a cash position because of the interest income that is generated from reinvesting the marked-to-market cash flows generated by the futures contract is referred to as tail the hedge.

---

Definitions:

Family Health History

The record of diseases and health conditions present in your family, important for predicting your risk of certain illnesses.

Coherent

Logically connected or consistent in argument, typically referring to speech, text, or thought.

Emergency Room

A hospital unit where immediate and urgent medical care is provided to patients with a broad spectrum of illnesses and injuries.

Family Health History

A record of the diseases and health conditions present in your family, which can indicate potential health risks for you.