Which of the Following Accurately Describes Possible Positions Taken by Hedgers

question 100

Multiple Choice

Which of the following accurately describes possible positions taken by hedgers?

• A) may take a short position in the futures market to offset a long position in the spot market
• B) may take a short position in the spot market to offset a long position in the futures market
• C) may take a long position in the spot market to offset a short position in the futures market
• D) may take a long position in the futures market to offset a long position in the spot market

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Definitions:

Plasma

The liquid component of blood, composed of water, salts, proteins, and various other substances, in which blood cells are suspended.

Transferrin

A plasma protein that transports iron throughout the body.

Erythrocytes

Red blood cells that are primarily responsible for carrying oxygen and carbon dioxide throughout the body.

Amino Acids

Organic compounds that combine to form proteins, which are the building blocks of life.