What Is Meant by Vertical Offset

question 47

Multiple Choice

What is meant by vertical offset?

• A) The deduction of capital charges because long and short positions in the same maturity bucket but in different instruments more than offset each other.
• B) The assignment of additional capital charges because long and short positions in the same maturity bucket but in different instruments cannot perfectly offset each other.
• C) The deduction of capital charges because long and short positions in different maturity buckets but in the same instrument more than offset each other.
• D) The assignment of additional capital charges because long and short positions in different maturity buckets but in the same instrument cannot perfectly offset each other.

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Definitions:

Thrombophlebitis

Inflammation of a vein associated with the formation of a blood clot.

Varicosities

Abnormally enlarged, twisted veins that typically appear in the legs, caused by weakened valves and veins that struggle to return blood to the heart.

Cardiac Notch

A concavity in the left lung's surface that accommodates the space the heart occupies in the chest cavity.

Spleen

An organ located under the ribcage and above the stomach in the left upper quadrant of the abdomen, playing a part in both immune response and the destruction of old or damaged red blood cells.