A Long Hedge Is the Addition of Which One of the Following

question 45

Multiple Choice

A long hedge is the addition of which one of the following to a short position in the underlying asset?

• A)short spot position
• B)any spot position
• C)any futures position
• D)long futures position
• E)either a short spot or short futures position

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Definitions:

Monopolistic Competitor

A firm in a market structure where many companies sell products that are similar but not identical, leading to competition based on factors other than price.

Price Discrimination

A pricing strategy where identical or substantially similar goods or services are sold at different prices by the same provider in different markets or segments.

Marginal Revenue

The additional revenue that a company earns from selling one more unit of a product.

Monopolistic Competitor

A market structure where many companies sell products that are similar but not identical, allowing for some degree of market power.