When the Target Duration Is Set at Zero,the Correct Number

question 40

True/False

When the target duration is set at zero,the correct number of futures contracts to use is the same as is obtained from the price sensitivity hedge ratio.

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Definitions:

Clothing Trade

The clothing trade involves the production, distribution, and sale of apparel and accessories through various markets and industries globally.

Center

Typically refers to the middle point of something or a position of neutrality or moderation in political contexts.

Labor-Saving Farm Implements

Tools or machines that reduce the amount of manual labor required in farming, contributing to increased efficiency and productivity in agriculture.

Overproduction

The condition where production exceeds the demand for goods, often leading to economic downturns and price falls.