If You Can Create a Perfect Hedge, Then You

question 107

Multiple Choice

If you can create a perfect hedge, then you:

• A) Are guaranteed to profit if interest rates rise.
• B) Are guaranteed to profit if prices rise.
• C) Risk losing your profit if prices fall.
• D) Risk losing your profit if interest rates fall.
• E) Will not profit nor lose if prices rise.

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Definitions:

Potential Sale

An opportunity that might result in the purchase of goods or services.

Goodwill Message

A communication intended to foster positive relations, often expressing thanks, congratulations, or well-wishes.

Positive Response

A favorable or affirmative reaction to a message, proposal, or situation.

Durable Notebook

A notebook designed to withstand rough handling and conditions, often made with high-quality, resilient materials.