Dynamic Hedging Requires That

question 92

Multiple Choice

Dynamic hedging requires that:

• A) the price or value sensitivities of the hedge portfolio and the assets are in alignment
• B) the price or value sensitivities of the hedge portfolio and the liabilities are in alignment
• C) the price or value sensitivities of the hedge portfolio and the expenses are in alignment
• D) the price or value sensitivities of the hedge portfolio and the revenues are in alignment

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Definitions:

Corresponding Body Part

A specific bodily organ or extremity that relates or corresponds to a particular function or activity.

Impulses

Electrical or chemical signals that transmit information along neurons, enabling communication within the nervous system.

Muscles

Tissues in the body composed of fibers capable of contracting to effect bodily movement.

Circulation

The process by which blood is pumped by the heart through the vascular system, delivering oxygen and nutrients to and removing waste products from cells.