Which of the Following Measures the Dollar Value of Futures

question 102

Multiple Choice

Which of the following measures the dollar value of futures contracts that should be sold per dollar of cash position exposure?

• A)Hedge ratio.
• B)Open position.
• C)Implied volatility.
• D)Payoff.
• E)Risk ratio.

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Definitions:

Usury Law

Legislation that sets maximum interest rates that can be charged on loans to protect consumers from excessively high rates.

Loanable Funds

The money available for borrowing in the financial markets, determined by the savings of individuals and entities and the banking system's capacity to lend.

Usury Law

Regulations governing the maximum interest rate that can be charged on loans, aimed at protecting consumers from excessively high rates.

Loanable Funds

A theory in economics that suggests the market interest rate is determined by the demand for and supply of money available for lending.