Hedging a Spot Position with a Futures Contract on a Similar

question 38

Multiple Choice

Hedging a spot position with a futures contract on a similar, but not identical, commodity is a ________ hedge.

• A) Cross
• B) Open
• C) Commodity
• D) Market
• E) Program

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Definitions:

Membrane

A selective barrier that encloses the cell or organelles within a cell, controlling the movement of substances in and out.

Mitochondria

Organelles responsible for generating most of the cell's supply of adenosine triphosphate (ATP), playing a key role in energy metabolism.

Gradient Formation

The process by which a concentration gradient of a particular molecule or ion is established, often across a biological membrane.

Electron Transport System

A series of complexes that transfer electrons through a membrane to create a gradient used for ATP production.