Futures Market Transactions Are Used to Reduce Risk

question 48

Multiple Choice

Futures market transactions are used to reduce risk. Risk may not be totally offset if:

• A) the two instruments have different maturities.
• B) payoff schedules of the two instruments are different.
• C) the volatility of the two instruments are different.
• D) the price movements are not perfectly correlated.
• E) All of

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