Which of the Following Accurately Describes Possible Positions Taken by Hedgers

question 100

Multiple Choice

Which of the following accurately describes possible positions taken by hedgers?

• A) may take a short position in the futures market to offset a long position in the spot market
• B) may take a short position in the spot market to offset a long position in the futures market
• C) may take a long position in the spot market to offset a short position in the futures market
• D) may take a long position in the futures market to offset a long position in the spot market

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Definitions:

Camera

A device used to capture images or videos, consisting of a lens and a body that records visual information on a medium or sensor.

Trespass to Chattels

A legal term referring to the intentional interference with someone else's personal property without permission.

Detinue

A legal action to recover possession of personal property wrongfully taken or retained.

Trespass to Land

The act of unlawfully entering, crossing, or remaining on someone's property without permission.