Options Generally Allow for a More Efficient Hedge Than Futures

question 24

True/False

Options generally allow for a more efficient hedge than futures.

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Definitions:

Dualistic

Pertaining to or involving a dichotomy or contrast between two concepts or entities.

Stereotypes

Oversimplified and widely held fixed images or ideas of particular types of people or things, which often lead to prejudices and unfair judgments.

Flexibility

The quality of being adaptable or variable in response to changing conditions or circumstances.

Stereotype Threat

The psychological experience of anxiety or concern in a situation where a person has the potential to confirm a negative stereotype about their social group.