A Long Hedge Is the Addition of Which One of the Following

question 45

Multiple Choice

A long hedge is the addition of which one of the following to a short position in the underlying asset?

• A)short spot position
• B)any spot position
• C)any futures position
• D)long futures position
• E)either a short spot or short futures position

Recognize the importance of general accounting principles and the accounting equation in business operations.

Identify the nature of transactions (external transaction) and their impact on the accounting equation.

Understand the concepts of owner financing, investing activities, and how revenues, expenses, and investments affect equity.

Realize the significance of measuring and analyzing return on assets as a performance indicator.

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Definitions:

Richness

The quality or state of being abundant or in great quantities, often used in the context of material wealth, cultural wealth, or biodiversity.

Feedback

Information provided regarding aspects of one's performance or behavior, intended to affirm strengths or identify areas for improvement.

Encoding

The process of converting information into a particular form for efficient storage, transmission, or encryption.

Modulation

The process of varying the properties of a waveform to encode information, typically used in telecommunications to transmit data.