Which of the Following Instruments Could Be Used to Execute

question 21

Multiple Choice

Which of the following instruments could be used to execute a delta,gamma and vega hedge?

• A)a swap
• B)an option
• C)a futures
• D)an FRA
• E)none of the above

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Definitions:

Noncash Investing

Investment activities that do not involve immediate cash transactions, such as acquiring assets through the issuance of stock or the exchange of one asset for another.

Financing Activities

Transactions and events that affect a company's long-term liabilities and equity, including debt issuance and equity transactions.

Statement Of Cash Flows

A financial statement that details the inflows and outflows of cash for a business over a specific period, highlighting operating, investing, and financing activities.

Significant Noncash

Transactions or activities that have a significant impact on an entity's financial statements without involving cash flows.