Special Damages That Compensate for a Loss That Goes Beyond

question 19

True/False

Special damages that compensate for a loss that goes beyond the contract itself are compensatory damages .

---

Definitions:

Basis Risk

The risk that the price of a hedge and the asset being hedged will not move in perfect correlation.

Call Option

A financial arrangement granting the buyer the freedom, but not the duty, to acquire an asset such as a stock, bond, commodity, at a set price within an established timeframe.

Credit Default Swap

A financial derivative that allows an investor to swap or offset credit risk with another party.

Cross Hedging

A risk management strategy that involves hedging a position in one asset by taking a position in another asset with correlated price movements.