Hedging an Asset with Contracts Written on a Similar, but Not

question 197

Multiple Choice

Hedging an asset with contracts written on a similar, but not identical, asset is called:

• A) Primary trading.
• B) Open trading.
• C) Open-hedging.
• D) Hedging.
• E) Perfect-hedging.

---

Definitions:

Sternberg's Triarchic Theory

A theory of intelligence proposing that human intelligence comprises three aspects: analytical, creative, and practical intelligence.

Gardner's Theory of Multiple Intelligences

A theory which proposes that people have different kinds of intelligences, including linguistic, logical-mathematical, musical, bodily-kinesthetic, spatial, interpersonal, intrapersonal, and naturalist.

Artificial Intelligence

The simulation of human intelligence processes by machines, especially computer systems, including learning, reasoning, and self-correction.

Trait Approach

A theory of leadership that suggests certain personal qualities and characteristics are inherent in great leaders.