In Cross-Hedging, If the Value of the Futures Contract Is

question 27

Multiple Choice

In cross-hedging, if the value of the futures contract is more volatile than the portfolio's value, the amount of principal represented by the futures contracts will be ____ the market valueofthe portfolio to be hedged.

• A) smaller than
• B) greater than
• C) equal to
• D) B and C are both possible

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Definitions:

Achievement Behavior

Actions aimed at accomplishing specific goals or meeting standards of excellence.

Hierarchy Of Needs

In Maslow’s theory, the order in which human needs demand attention.

External "Press"

Environmental factors or social pressures that influence an individual's behavior or choices.

Trait Approach

A perspective in psychology that focuses on identifying and measuring individual personality characteristics that are thought to be relatively stable over time.