Which of the Following Statements Is True

question 51

Multiple Choice

Which of the following statements is true?

• A) If a cash asset is hedged on a dollar for dollar basis with a forward or futures contract, we refer to this hedge as a dollar hedge.
• B) If a cash asset is hedged on a dollar for dollar basis with a forward or futures contract, we refer to this hedge as a plain hedge.
• C) If a cash asset is hedged on a dollar for dollar basis with a forward or futures contract, we refer to this hedge as a naive hedge.
• D) All of the listed options are correct.