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Which One of the Following Futures Contracts Is Generally Used

question 71

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Which one of the following futures contracts is generally used to hedge a bond portfolio?


Definitions:

Preoperational

A stage in Piaget's theory of cognitive development, during which a child from about 2 to 7 years old begins to engage in symbolic play but does not yet understand concrete logic.

Formal Operational

The final stage of cognitive development (as per Jean Piaget's theory), characterized by the ability to think abstractly, logically, and systematically.

Concrete Operational

A stage in Piaget's theory of cognitive development where children (around ages 7 to 12) gain the ability to think logically about concrete and specific objects and events.

Sensory-Motor

Referring to the integration of sensory input and motor output, enabling coordinated movements and actions in response to external stimuli.

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