Which of the Following Statements Is True

question 41

Multiple Choice

Which of the following statements is true?

• A)The mismatches between changes in the price of the exposure and the value of the instrument used to hedge the position is called value risk.
• B)The mismatches between changes in the price of the exposure and the value of the instrument used to hedge the position is called basis risk.
• C)The mismatches between changes in the price of the exposure and the value of the instrument used to hedge the position is called gap risk.
• D)The mismatches between changes in the price of the exposure and the value of the instrument used to hedge the position is called fundamental risk.

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