A Short Hedge Is One in Which

question 46

Multiple Choice

A short hedge is one in which

• A)the margin requirement is waived
• B)the hedger is short futures
• C)the hedger is short in the spot market
• D)the futures price is lower than the spot price
• E)none of the above

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Definitions:

Good And Valid Title

A legal condition where an asset or property is free of liens or legal encumbrances, ensuring the owner has the right to sell or transfer it.

Statute Of Limitations

A law that sets the maximum time after an event within which legal proceedings may be initiated.

UCC

The Uniform Commercial Code, a set of laws that governs sales and commercial transactions in the United States.

Breach

The violation of a law, duty, agreement, or trust, leading to legal consequences.