What Is the Reason for Decrease in the Number of Futures

question 110

Multiple Choice

What is the reason for decrease in the number of futures contract needed to hedge a cash position in case of tailing the hedge?

• A)Lower average transaction costs resulting from higher number of transactions.
• B)Interest income generated from reinvesting the cash flows generated by the futures contracts.
• C)Lack of perfect correlation between spot and futures prices.
• D)The effect of conversion factor.
• E)Hedging only a proportion of balance sheet position.

Identify and explain the components and hierarchy of human needs according to Maslow.

Delineate the difference between mood and emotion.

Apprehend the importance of cognitive appraisal in emotional response according to the Schachter and Singer theory.

Understand the contribution of language and cognition to the experience and expression of emotions.

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