Which of the Following Correctly Expresses the Profit on a Hedge

question 14

Multiple Choice

Which of the following correctly expresses the profit on a hedge?

• A)the basis when the hedge is closed
• B)the change in the basis
• C)the spot profit minus the futures profit
• D)the futures profit minus the spot profit
• E)none of the above

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Definitions:

Martin Seligman

A psychologist known for his work on positive psychology, learned helplessness, and for promoting concepts such as PERMA to characterize well-being.

Downward Comparison

A social comparison strategy where individuals compare themselves to others who are less competent or in a worse situation, which can boost self-esteem.

Self-effacing Bias

The tendency to attribute successes to external factors and failures to internal factors, often observed in some cultures.

Homogeneity Of Attribution

The tendency to assume that individuals within a group share the same attributes, beliefs, or characteristics, often leading to stereotypes.