Hedging a Position Using Futures on Another Commodity Is Called

question 73

Multiple Choice

Hedging a position using futures on another commodity is called

• A) surrogate hedging.
• B) cross hedging.
• C) alternative hedging.
• D) correlative hedging.
• E) proxy hedging.

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Definitions:

Mission

A statement that defines the purpose, goals, and values of an organization, guiding its strategies, decisions, and operations.

Business

The clear, broad, underlying industry or market sector of an organization’s offering.

Performance Targets

Specific goals set for individuals or teams to achieve within a set timeframe, often used as a measure of productivity or quality in the workplace.

Visions

Describes a company's future aspirations or long-term goals, providing a framework for strategic planning and decision-making.