The Tailed Hedge Ratio (Which Takes into Account Daily Resettlement

question 19

Multiple Choice

The tailed hedge ratio (which takes into account daily resettlement of the futures contract) is smaller than the untailed one in absolute value. Which of these statements is true in relation to this mathematical fact?

• A) The interest earned or lost on the daily mark-to-market gains and losses increases the volatility of the changes in value of the hedging futures position, thereby reducing the hedge ratio.
• B) The volatility of interest rates makes the correlation of spot and futures lower, and enhances basis risk between the spot and futures markets.
• C) If nominal interest rates were constant, the tailed and untailed hedge ratios would be the same.
• D) If real interest rates were constant, the tailed and untailed hedge ratios would be the same.

Understand the physiological responses of the skin to various stimuli, including temperature changes and injury.

Explain the composition and functions of the dermis and subcutaneous tissue.

Understand the structure and function of the integumentary system components, including dermal and epidermal layers.

Recognize the roles and mechanisms of various skin cells and their contributions to skin pigmentation and vitamin D synthesis.

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Definitions:

LP Records

Long-playing vinyl records, a format for sound recording and playback that gained popularity in the mid-20th century.

Phonograph

An early sound-reproducing machine that used cylinders or discs to record and reproduce sound mechanically.

Liberal Judges

Judges who are generally open to reform and are often associated with advocating for civil liberties and rights.

Conservative Judges

Judges who tend to adhere to traditional values and principles in making legal decisions, often favoring judicial restraint over activism.