In Cross-Hedging, If the Futures Contract Value Is ____ Volatile

question 36

Multiple Choice

In cross-hedging, if the futures contract value is ____ volatile than the portfolio value, hedging will require a ____ amount of principal represented by the futures contracts.

• A)less; greater
• B)more; greater
• C)more; smaller
• D)none of the above

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Definitions:

Hasty Generalization

An argumentative flaw where the ending assertion lacks adequate or neutral supporting proof.

Accident

An unexpected and usually undesirable event, often resulting in damage or injury.

Appeal to Ignorance

A fallacy in reasoning that occurs when it is assumed that a claim is true because it has not been proven false, or vice versa.

Europeans

People from the continent of Europe, often referring to their collective cultures, histories, or physical characteristics.