Which of the Following Instruments Could Be Used to Execute

question 21

Multiple Choice

Which of the following instruments could be used to execute a delta,gamma and vega hedge?

• A)a swap
• B)an option
• C)a futures
• D)an FRA
• E)none of the above

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Definitions:

Grams

A metric unit of mass equal to one thousandth of a kilogram, commonly used to measure small quantities of material.

Kilograms

A unit of mass in the metric system, equivalent to one thousand grams.

Dimensional-analysis

A process of converting units of measurement to solve problems involving measurements of various dimensions.

Kilometers

A unit of length in the metric system equal to 1000 meters.