Which of the Following Would Be an Effective Hedge

question 69

Multiple Choice

Which of the following would be an effective hedge?

• A)Sell £2,278.13 forward at the 1-year forward rate, F₁($/£), that prevails at time zero.
• B)Buy £2,500 forward at the 1-year forward rate, F₁($/£), that prevails at time zero.
• C)Sell £25,000 forward at the 1-year forward rate, F₁($/£), that prevails at time zero.
• D)None of the above

---

Definitions:

Euphoria

An emotion or condition of extreme joy and exhilaration.

Health

The state of complete physical, mental, and social well-being, not merely the absence of disease or infirmity, requiring access to healthcare, nutrition, and lifestyle choices that support well-being.

Labeled

The process of categorizing individuals based on certain characteristics or behaviors, often leading to stereotyping and discrimination.

Marijuana Smokers

Individuals who inhale the smoke or vapor of marijuana, a psychoactive drug from the Cannabis plant, for recreational or medicinal purposes.