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

---

Definitions:

Normally-open

Refers to a switch or valve that is in an open state, allowing passage or flow, when not actuated.

Energized-to-run

A condition where equipment needs electrical power applied to start operating.

Torque

A measure of rotational force, indicating the power an engine or motor generates to turn a shaft or wheel, crucial in determining a vehicle's acceleration and load-carrying capacity.

Output Split

Output Split is a term used in powertrain technology to describe a method of distributing power output between different pathways or components, such as in hybrid vehicles.