A Futures Instrument,such as a T-Bill,can Be Used to Hedge

question 2

Multiple Choice

A futures instrument,such as a T-bill,can be used to hedge a cash or a spot instrument such as the prime rate,where the two instruments are not perfectly correlated.What type of hedge is this referred to as?

• A)A perfect hedge
• B)A straight hedge
• C)A cross hedge
• D)None of the above

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Definitions:

Ratify the Constitution

The process by which the formal consent is given, making the Constitution officially valid.

Subject of Slavery

The condition or institution wherein individuals are owned by others, forced to work without pay, and deprived of freedom and rights.

Idea of Republicanism

A political ideology centered on citizenship in a state organized as a republic, emphasizing liberty, democracy, and civic virtue.

Articles of Confederation

The original constitution of the 13 American states, adopted in 1781, which was eventually replaced by the U.S. Constitution in 1789.