Which of the Following Statements Is True

question 51

Multiple Choice

Which of the following statements is true?

• A) If a cash asset is hedged on a dollar for dollar basis with a forward or futures contract, we refer to this hedge as a dollar hedge.
• B) If a cash asset is hedged on a dollar for dollar basis with a forward or futures contract, we refer to this hedge as a plain hedge.
• C) If a cash asset is hedged on a dollar for dollar basis with a forward or futures contract, we refer to this hedge as a naive hedge.
• D) All of the listed options are correct.

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Definitions:

Italian Renaissance

A period of great cultural change and achievement in Italy that began in the 14th century, characterized by advancements in art, architecture, literature, and science.

Idealism

A philosophical approach asserting that reality, or reality as we can know it, is fundamentally mental, mentally constructed, or otherwise immaterial.

Realism

An artistic, literary, and intellectual movement that rejects idealization, focusing on depicting subjects as they are perceived in everyday life.

Religious Order

An organization of individuals who live under religious vows and dedicate their lives to spiritual goals, following a specific set of rules.