A Futures Position That Is Equal, but Opposite, the Position

question 57

Multiple Choice

A futures position that is equal, but opposite, the position you have in the underlying asset defines which one of the following terms?

• A)short hedge
• B)long hedge
• C)full hedge
• D)partial hedge
• E)underlying hedge

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Definitions:

Company Policy

A set of rules, guidelines, or principles established by an organization that governs its operations and employee behavior.

Sarbanes-Oxley Act

A United States federal law enacted in 2002 aimed at protecting investors from fraudulent financial reporting by corporations.

Public Company Accounting Oversight Board

A nonprofit organization established by Congress to oversee the audits of public companies in order to protect the interests of investors and further the public interest in the preparation of informative, accurate, and independent audit reports.

Financial Misconduct

Engaging in wrongful or fraudulent activities related to monetary transactions or financial management.