The Price Sensitivity Hedge Ratio Uses the Durations of the Spot

question 20

True/False

The price sensitivity hedge ratio uses the durations of the spot and futures positions.

---

Definitions:

Oral Contract

An agreement between two or more parties that is made verbally and is as legally binding as a written contract, albeit more difficult to prove.

Sale of Land

The transfer of ownership and title of a parcel of real property from one party to another, typically through a purchase agreement or contract.

Statute of Frauds

A legal principle requiring certain contracts to be in writing and signed by the parties to be enforceable.

Attached to Land

Refers to something that is physically or legally connected to a piece of land, such as a building or a fixture, which becomes part of the real property.