Which of the Following Statements Is True

question 3

Multiple Choice

Which of the following statements is true?

• A)If a cash asset is hedged on a dollar for dollar basis with a forward or futures contract, we refer to this hedge as a dollar hedge.
• B)If a cash asset is hedged on a dollar for dollar basis with a forward or futures contract, we refer to this hedge as a plain hedge.
• C)If a cash asset is hedged on a dollar for dollar basis with a forward or futures contract, we refer to this hedge as a naïve hedge.
• D)All of the listed options are correct.

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Definitions:

Ethical Concerns

Issues pertaining to the principles of right and wrong behavior, particularly regarding conduct in professional and business contexts.

Industrial Pollution

The release of harmful substances and pollutants into the environment as a result of industrial activities, leading to environmental degradation and health risks.

Raw Materials

Basic materials and substances used in the initial stages of production and manufacturing processes.