Which of the Following Statements Is True

question 62

Multiple Choice

Which of the following statements is true?

• A)Using a futures or forward contract to hedge a specific asset or liability risk is called macrohedging.
• B)Using a futures or forward contract to hedge a specific asset or liability risk is called microhedging.
• C)Using a futures or forward contract to hedge a specific asset or liability risk is called asset- or liability-specific hedging.
• D)Using a futures or forward contract to hedge a specific asset or liability risk is called naïve hedging.