Which of the Following Is Necessary for Tailing a Hedge

question 10

Multiple Choice

Which of the following is necessary for tailing a hedge?

• A) Comparing the size in units of the position being hedged with the size in units of the futures contract
• B) Comparing the value of the position being hedged with the value of one futures contract
• C) Comparing the futures price of the asset being hedged to its forward price
• D) None of the above

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Definitions:

Attorney's Signature

The formal endorsement by a lawyer on legal documents, signifying approval or responsibility.

Complaint

in legal terms, is a formal document submitted by the plaintiff to initiate a lawsuit, detailing the facts and legal reasons they believe they are entitled to relief from the defendant.

Seventh Amendment

Refers to a provision of the United States Constitution that guarantees the right to a jury trial in civil cases involving more than twenty dollars.

Right To Jury Trial

The Right To Jury Trial is a constitutional right where a defendant in a criminal case or a party in a civil case is entitled to have their case heard and decided by a jury of their peers.