A Hedge Portfolio Is Established and Maintained by Constantly Adjusting

question 45

Multiple Choice

A hedge portfolio is established and maintained by constantly adjusting the relative proportions of stock and options,a process referred to as

• A)actively managing
• B)continuous reconciliation
• C)marking to market
• D)dynamic trading
• E)none of the above

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Definitions:

Constructive Condition

A condition inferred by law in contracts, implying that certain promises must be fulfilled before other corresponding duties are required.

Impossibility

Impossibility describes a situation where an event or action cannot occur or be performed.

Convey Real Estate

The act of transferring title, ownership, and rights of real estate property from one party to another through a deed or legal document.

Nonperformance

The failure to act or fulfill one’s duties or obligations as agreed or required.