Tailing the Hedge Is: Choose One)

question 8

Multiple Choice

Tailing the hedge is: choose one)

• A) A strategy where the hedge position is increased at the end of the life of the hedge
• B) A strategy where the hedge position is increased at the end of the life of the futures contract
• C) A more exact calculation of the hedge ratio when forward contracts are used for hedging
• D) None of the above

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Definitions:

Postconventional Level

Kohlberg’s highest level of moral development, in which moral reasoning involves weighing moral alternatives; “right” is whatever furthers basic human rights.

Ethically Demanding

Refers to situations or decisions that require a high level of ethical consideration and moral judgement.

Preconventional

A stage in Kohlberg's theory of moral development where moral reasoning is based primarily on the consequences of actions and on rewards and punishments.

Moral Development

The process through which individuals learn and internalize societal norms and values regarding what is right and wrong, influencing their ethical behavior.