Hedging Risk for a Short Position Is Accomplished by

question 54

Multiple Choice

Hedging risk for a short position is accomplished by

• A)taking a long position.
• B)taking another short position.
• C)taking additional long and short positions in equal amounts.
• D)taking a neutral position.

---

Definitions:

Budget Line

A graphical representation of all possible combinations of two goods that a consumer can purchase at given prices and within a specific budget.

Price Of Cup

The amount of money required to purchase a cup, which can vary based on the cup's material, design, and the location of purchase.

Consumption Bundle

A combination of different goods and services that an individual or a household consumes over a certain period.

Income On Food

The portion of an individual's or household's income that is spent on food and food-related expenses.