23-77 What Reflects the Degree to Which the Rate on the Option's

question 110

Multiple Choice

23-77 What reflects the degree to which the rate on the option's underlying asset moves relative to the spot rate on the asset or liability that is being hedged?

• A)Credit risk.
• B)Basis risk.
• C)Hedge risk.
• D)Volatility.
• E)Open interest.

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An assertion that expresses an opinion, value judgement, or what ought to be, rather than what is factual or descriptive.

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