A(n)[blank] Is a Financial Instrument That Can Be Used to Hedge

question 105

Multiple Choice

A(n) [blank] is a financial instrument that can be used to hedge the effect of both favourable and unfavourable price movements.

• A)convertible securities
• B)call option
• C)put option
• D)futures contracts

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Definitions:

Ozone Depletion Potential (ODP)

Rating of atmospheric gases according to their ability to damage the ozone layer. For instance, CFCs would be rated at a higher ODP than HCFCs.

Refrigerants

Substances used in heating, ventilation, air conditioning, and refrigeration (HVAC/R) systems, responsible for absorbing and removing heat to facilitate cooling or refrigeration.

Cooling Capacity

The amount of heat energy that a cooling system (such as an air conditioner or refrigerator) can remove from a specific area within a certain time period.

Refrigerated Van

A refrigerated van is a vehicle designed with insulation and a cooling system to transport perishable goods at controlled temperatures.