The Number of Futures Contracts Needed to Hedge a Position

question 24

True/False

The number of futures contracts needed to hedge a position increases as the bank's duration gap increases.

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Definitions:

Exam Scores

Numerical values assigned to evaluate the performance of students in examinations, often used as indicators of academic achievement.

Blinding

A methodology in experimentation where information about the test is masked from the participants to reduce bias.

Five-point Scale

A method of measurement that offers five distinct options to respondents, ranging from high to low or excellent to poor, for evaluation purposes.

Bottled Water

Packaged water sold in bottles and often treated to remove impurities and contaminants, offered as a portable and convenient choice for hydration.