A Futures Instrument,such as a T-Bill,can Be Used to Hedge

question 2

Multiple Choice

A futures instrument,such as a T-bill,can be used to hedge a cash or a spot instrument such as the prime rate,where the two instruments are not perfectly correlated.What type of hedge is this referred to as?

• A)A perfect hedge
• B)A straight hedge
• C)A cross hedge
• D)None of the above

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Definitions:

Family Problems

Issues or conflicts within a family unit that can affect relationships and well-being of family members.

Social Referencing

The process by which individuals look to others in their environment for cues on how to react or behave in uncertain situations.

Nonverbal Decoding

The ability to interpret and understand the meanings behind nonverbal cues, such as facial expressions and body language.

Social Smiling

The act of smiling in response to interacting with others, typically developing around two months of age in infants as a means of communication.