The 'Hedge Ratio' Refers To

question 48

Multiple Choice

The 'hedge ratio' refers to:

• A) the price in the spot market divided by the price in the derivatives market.
• B) the number of futures contracts needed to equate the gain on a futures position and the loss on the exposure.
• C) the difference between a derivative position and the underlying fixed- rate loan.
• D) the contract rate in a FRA less the benchmark rate.

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Definitions:

Psychological Test

A standardized measure of a sample of a person's behavior or mental processes, often used to assess aspects of personality, intelligence, or specific abilities.

Established Standards

Officially recognized criteria or benchmarks that are widely accepted and used for comparison or judgment.

Test-Retest Reliability

A measure of the consistency of a psychological test or assessment over time, indicating the stability of the results upon repeated applications.

Vocational-Interest Test

An assessment tool used to identify a person's preferences and interests in relation to various careers or occupations.