Hedging One Commodity by Using a Futures Contract on Another

question 23

Multiple Choice

Hedging one commodity by using a futures contract on another commodity is called

• A) surrogate hedging.
• B) cross hedging.
• C) alternative hedging.
• D) correlative hedging.
• E) proxy hedging.

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Definitions:

Cold Canvassing

The process of approaching potential customers or clients unsolicited, without prior contact or appointment, typically in person or over the phone.

Sales Calls

The act of contacting potential customers directly, typically over the phone or in person, to promote and sell products or services.

Product

An item or service created through a process and offered to the market to satisfy a need or want.

Prospecting Methods

Various strategies used to identify potential customers or clients who might be interested in a company's products or services.