Tailing-The-Hedge Normally Requires an FI Manager to Utilize More Futures

question 20

True/False

Tailing-the-hedge normally requires an FI manager to utilize more futures contracts to hedge a cash position than are warranted by the initial analysis.

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Definitions:

Pressing or Rolling Operation

A manufacturing process where metal is shaped by pressing or rolling, often used for forming sheets, plates, or profiles.

Fit Symbol

Symbols used in engineering to specify the type of fit between two mating parts; typically defines tolerance and type such as clearance or interference.

Thread Representation

A method in technical drawings to indicate the detailed characteristics of thread on a part, including major diameter, pitch, and thread form.

Loosest Threads

The threads within a fastening system that have the highest tolerance, allowing for easier engagement or disengagement.