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:

Psychosocial Development

A theory proposing stages through which individuals progress throughout their lives, involving challenges in the domains of personal and social development.

Generativity

A stage in Erik Erikson's theory of psychosocial development, usually occurring in middle adulthood, where individuals seek to guide the next generation or contribute to society.

Erikson

Refers to Erik Erikson, a developmental psychologist known for his theory on the psychosocial development of humans.

Nonmarital Relationship

A romantic or sexual relationship between individuals who are not legally married to one another.