Hedging in the Futures Markets Can Reduce All Risk If

question 40

Multiple Choice

Hedging in the futures markets can reduce all risk if:

• A)price movements in both the cash and futures markets are perfectly correlated.
• B)price movements in both the cash and futures markets have zero correlation.
• C)price movements in both the cash and futures markets are less than perfectly correlated.
• D)the hedge is a short hedge,but not a long hedge.
• E)the hedge is a long hedge,but not a short hedge.

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Definitions:

Adaptive Selling

The altering of sales behavior during a customer interaction based on perceived information about the selling situation.

Predictive Analysis

The use of data, statistical algorithms, and machine learning techniques to identify the likelihood of future outcomes based on historical data.

Machine Learning

A discipline combining science, statistics, and computer coding to make predictions based on patterns discovered in data.

Sales Territories

The customer groups or geographic districts to which an individual salesperson or a sales teams sells.