A Forward Contract That Pays Ln(ST/S₀)and Can Be Used to Hedge

question 9

Multiple Choice

A forward contract that pays ln(ST/S₀) and can be used to hedge or speculate on variance is called a ________ contract.

• A) Growth
• B) Log
• C) Variance
• D) Volatility

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Definitions:

Freed Blacks

African American individuals who were emancipated from slavery, especially during and after the Civil War in the United States.

Runaway Slaves

Enslaved people who escaped from their enslavers in an attempt to gain freedom, often facing great risks and seeking safe haven through networks like the Underground Railroad.

Wilmot Proviso

A proposed amendment to a bill in the U.S. Congress in 1846 aiming to ban slavery in territory acquired from Mexico.

Fugitive Slave Law of 1850

Part of the Compromise of 1850, this law required citizens to assist in the capture of runaway slaves and denied fugitives the right to a jury trial.