A Hedge Ratio Can Be Computed as ____________

question 39

Multiple Choice

A hedge ratio can be computed as ____________.

• A)profit derived from one futures position for a given change in the exchange rate divided by the change in value of the unprotected position for the same exchange rate
• B)the change in value of the unprotected position for a given change in the exchange rate divided by the profit derived from one futures position for the same exchange rate
• C)profit derived from one futures position for a given change in the exchange rate plus the change in value of the unprotected position for the same exchange rate
• D)the change in value of the unprotected position for a given change in the exchange rate plus by the profit derived from one futures position for the same exchange rate
• E)none of the above

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Definitions:

Elements

Individual items or components in a larger data structure, such as arrays, lists, or HTML documents.

Wide Range

Refers to a broad spectrum or variety within a certain category or field.

Parameters

Variables that are passed to a function or method as input, where the function can then use or modify them to perform a task.

Wildcard

In computing, a symbol or set of symbols used to represent unknown, variable, or multiple characters or numbers in a command or search.