According to the Text, Using a Futures Contract on One

question 6

Multiple Choice

According to the text, using a futures contract on one financial instrument to hedge securities not identical to the instrument represented by the futures contract is known as _______ hedging.

• A)cross
• B)ratio
• C)beta
• D)liquid

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Definitions:

Salt Deposits

Concentrations of salt left behind after the evaporation of saline water, typically found in arid environments or sedimentary basins.

Restricted Seaways

Narrow bodies of water that connect two larger bodies of water, often with limited water flow and unique ecological conditions.

Ocean Basins

Large depressions on the Earth's surface that contain the world's oceans, formed by plate tectonics and shaped by geological processes.

Continents Position

The location of the Earth's continents, which changes over geological time due to the movement of tectonic plates.