If You Want to Lock in the Price Today for a Sale

question 281

Multiple Choice

If you want to lock in the price today for a sale which you will make sometime in the future, you should engage in a:

• A) Swap contract.
• B) Cross-hedge.
• C) Interest rate floor.
• D) Long call option.
• E) Forward contract.

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Definitions:

Source Traits

Stable and permanent traits that are the basic factors of personality, derived by the method of factor analysis.

Surface Traits

Traits that show a correlation but do not constitute a factor because they are not determined by a single source.

Personality

The combination of characteristics or qualities that form an individual's distinctive character, shaping their patterns of thought, feelings, and behaviors.

Factor

An element contributing to a particular result or situation.