A Financial Institution That Sells a Particular Futures Contract and Later

question 63

Multiple Choice

A financial institution that sells a particular futures contract and later purchases the same contract back is executing:

• A)a long hedge.
• B)a short hedge.
• C)a sideways hedge.
• D)an up-side-down hedge.
• E)None of the options are correct

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Definitions:

Leaner

Refers to a person or process aiming for efficiency and minimal waste in production, often associated with lean manufacturing or management principles.

Racial Prejudice

Prejudgment or negative attitude based on a set of characteristics associated with the colour of a person’s skin.

Sexism

The belief that one sex is superior to the other, often resulting in the discrimination or devaluation of that gender and the roles related to it.

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Large barrels used to store and serve beer, often associated with parties or gatherings.