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:

Concept Testing

The process of evaluating consumer response to an idea or prototype before a product is launched or a significant investment is made.

Diffusion of Innovations

The process by which a new idea, product, or behavior is adopted by a population, spreading through various communication channels over time.

Adoption Process

The series of stages consumers go through when deciding whether to purchase a new product or service, including awareness, interest, evaluation, trial, and adoption.

Branding Process

The series of strategies and actions a company undertakes to develop a strong and consistent identity in the market that resonates with its target audience.