The Two Basic Types of Hedges Involving the Futures Market

question 5

True/False

The two basic types of hedges involving the futures market are long hedges and short hedges, where the words "long" and "short" refer to the maturity of the hedging instrument.For example, a long hedge might use Treasury bonds, while a short hedge might use 3-month T-bills.

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Definitions:

Serious Personal Consequences

Significant or grave outcomes that affect an individual's life or well-being as a result of certain actions or decisions.

Social Image

The perception or view of an individual or organization held by the public and shaped through media, communication, and symbolic representations.

Cognitive Dissonance

The psychological unease felt when a person simultaneously maintains conflicting beliefs, ideas, or values.

Consideration Set

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