With Any Hedge

question 56

Multiple Choice

With any hedge,

• A)your losses on one side should about equal your gains on the other side.
• B)you should try to make money on both sides of the transaction; that way you make money coming and going.
• C)you should spend at least as much time working the hedge as working the underlying deal itself.
• D)you should agree to anything your banker puts in front of your face.

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Definitions:

Negligent Credentialing

A legal theory that holds employers or institutions liable for failing to verify the qualifications or competencies of a professional they hire.

Ostensible Authority

The appearance or implication of authority given to an agent by the actions or statements of the principal, leading third parties to believe the agent has such authority.

Faulty Design

A defect in the planning or engineering of a product, making it unsafe or unsuitable for its intended purpose.

True Locality Rule

A means to judge a health care provider’s actions on the basis of the standard of care used in the exact same locality or community.