A Short Hedge Is a Simultaneous ________ Position in the Spot

question 12

Multiple Choice

A short hedge is a simultaneous ________ position in the spot market and a ________ position in the futures market.

• A) long; long
• B) long; short
• C) short; long
• D) short; short

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Definitions:

R&D

Stands for Research and Development; it involves activities undertaken by businesses and organizations to innovate and introduce new products or services.

Marketing and Advertising

The activities involved in promoting and selling products or services, including market research and advertising campaigns.

Contestable Market

A market where there are no barriers to entry or exit, allowing for potential competitors to enter the market easily, keeping prices competitive.

Market Entry

The process or strategy by which a company enters into a new market or industry, often involving overcoming barriers to entry and competition.