Futures Markets Can Be Used to Hedge Which of the Following

question 40

Multiple Choice

Futures markets can be used to hedge which of the following?

• A)interest rate risk
• B)exchange rate risk
• C)the risks that stock prices may change
• D)All of the above are correct.

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Definitions:

Drinking

The act of consuming liquids; in a health context often refers to the intake of alcohol or other beverages.

Listening to Music

The act of actively engaging with music through hearing, often used as a form of entertainment, relaxation, or mood alteration.

Exercising

The activity of engaging in physical workouts to improve health or maintain fitness.

Yerkes-Dodson Law

A theory suggesting there is an optimal level of arousal for the best performance of any task; too little or too much arousal can negatively affect performance.