A Firm Provides a Service That Benefits from Decreasing Employment

question 9

Multiple Choice

A firm provides a service that benefits from decreasing employment.This firm has a risk exposure to macro event.All other variables being equal,which of the following derivative securities is the firm most likely use to hedge its exposure?

• A) Short position in an economic futures
• B) Long position in an economic futures
• C) Short position in an interest rate futures
• D) Long position in an interest rate futures