What Is Meant by Horizontal Offset

question 8

Multiple Choice

What is meant by horizontal offset?

• A) The deduction of capital charges because long and short positions of the same maturities have durations that more than perfectly hedge each other.
• B) The assignment of additional capital charges because long and short positions of the same maturities have durations that do not perfectly hedge each other.
• C) The deduction of additional capital because long and short positions of different maturities more than perfectly hedge each other.
• D) The assignment of additional capital charges because long and short positions of different maturities do not perfectly hedge each other.

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Definitions:

Coronary-Prone Behavior

Refers to personality traits and behaviors, including time urgency and hostility, linked to an increased risk of heart disease.

Type A Behavior

Behavior characterized by a sense of time urgency, competitiveness, and hostility.

Passive Behavior

A pattern of avoiding confrontation and not expressing needs or desires directly.

Emotional Support

The provision of reassurance, acceptance, and encouragement during times of stress.