The Size of the Position Per Unit of the Underlying

question 17

Multiple Choice

The size of the position per unit of the underlying asset or commodity that achieves minimum risk is known as the _____.

• A)rolling hedge
• B)hedgelet
• C)hedge ratio
• D)asset ratio

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Definitions:

Time Period Assumption

An accounting principle that allows businesses to divide their activities into specific time periods, such as months, quarters, or years, for reporting purposes.