What Is the Reason for Decrease in the Number of Futures

question 80

Multiple Choice

What is the reason for decrease in the number of futures contract needed to hedge a cash position in case of tailing the hedge?

• A)Lower average transaction costs resulting from higher number of transactions.
• B)Interest income generated from reinvesting the cash flows generated by the futures contracts.
• C)Lack of perfect correlation between spot and futures prices.
• D)The effect of conversion factor.

Understand the concept of market segmentation and its importance in marketing strategies.

Comprehend the steps involved in the strategic marketing planning process.

Identify and apply the elements of the marketing mix (Product, Price, Place, Promotion) in creating customer value.

Recognize the role of value-based marketing in determining pricing strategies.