Which of the Following Is Necessary for Tailing a Hedge

question 10

Multiple Choice

Which of the following is necessary for tailing a hedge?

• A) Comparing the size in units of the position being hedged with the size in units of the futures contract
• B) Comparing the value of the position being hedged with the value of one futures contract
• C) Comparing the futures price of the asset being hedged to its forward price
• D) None of the above

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Definitions:

Globalization

The way in which corporations or different organizations acquire international impact or initiate operations globally.

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