An Investor Who Is Hedging a Corporate Bond Portfolio Using

question 15

Multiple Choice

An investor who is hedging a corporate bond portfolio using a T-bond futures contract is said to have a(n) _______.

• A) arbitrage
• B) cross-hedge
• C) over-hedge
• D) spread-hedge

---

Definitions:

Commercial AI

Artificial intelligence applications in commercial sectors aimed at solving business problems or enhancing operational efficiency.

Deep Learning

A subset of machine learning involving neural networks with many layers, enabling the model to learn complex patterns in large amounts of data.

Human Intelligence

The cognitive capability of humans, including the ability to learn from experience, adapt to new situations, understand and handle abstract concepts, and use knowledge to manipulate one's environment.

Expert Systems

Computer systems that mimic the decision-making ability of a human expert.