A _________ Hedge Involves the Sale of a Futures Contract

question 116

Multiple Choice

A _________ hedge involves the sale of a futures contract to offset potential losses from _________ prices.

• A) Long; falling
• B) Open; rising
• C) Market; stable
• D) Short; falling
• E) Speculative; stable

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Definitions:

Cooperative Business Ownership

A business model owned and operated by a group of individuals for their mutual benefit, where decisions and profits are shared among the members.

Substance Abuse

The harmful or hazardous use of psychoactive substances, including alcohol and illicit drugs, leading to addiction or dependence.

Secondary Labour Market

Part of the labor market characterized by low pay, job insecurity, and limited career opportunities, often contrasting with primary labor markets that offer better employment conditions.

Primary Labour Market

The part of the labor market that offers high-paying jobs, good working conditions, and security to its workers, often requiring higher education and specific skills.