Which Type of Hedge Fund May Monitor the Futures and Spot

question 20

Multiple Choice

Which type of hedge fund may monitor the futures and spot markets to identify situations when prices in the two markets depart from the cost-of-carry model?

• A) long -short equity
• B) arbitrage
• C) event-driven
• D) global macro markets

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Definitions:

Raw Materials Costs

The expenses associated with acquiring raw materials required to manufacture a product.

Manufacturing Overhead

All the manufacturing costs except raw material and direct labor.

Manufacturing Overhead

All indirect costs associated with the production process, such as utilities, depreciation, and salaries for production supervisors.

Direct Labor

The wages of those persons whose efforts directly affect the quality or other characteristics of the products manufactured.