The Two Basic Types of Hedges Involving the Futures Market

question 5

True/False

The two basic types of hedges involving the futures market are long hedges and short hedges, where the words "long" and "short" refer to the maturity of the hedging instrument.For example, a long hedge might use Treasury bonds, while a short hedge might use 3-month T-bills.

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Definitions:

Spousal Privilege

A legal right that protects a spouse from having to testify against their partner in court.

Vicarious Liability

A legal doctrine that holds one person or entity liable for the actions of another, based on their relationship.

Altercations

Conflicts or disputes, often resulting in a verbal or physical confrontation.

Deceit

The act of intentionally misleading or deceiving someone to gain an advantage or cause loss to another.