Which of the Following Is NOT an Advantage of Using

question 57

Multiple Choice

Which of the following is NOT an advantage of using futures contracts to hedge an exposure compared to using forward contracts to hedge the same exposure?

• A)Futures hedges are easier to unwind.
• B)Futures have very low transaction costs.
• C)Futures offer greater flexibility in terms of contract features.
• D)Futures generally have more liquid markets.
• E)Futures generally offer greater efficiency.

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Definitions:

Resentment

Persistent ill will or bitterness arising from past insults, injuries, or injustices.

Mental Health

The state of an individual's emotional, psychological, and social well-being, affecting how they think, feel, and act.

Expressed Struggles

The voicing or sharing of difficulties, challenges, or conflicts that one is experiencing, often seeking understanding, support, or solutions.

Triggering Event

An incident or situation that initiates a reaction, often setting off a conflict or emotional response.