When the Futures Expires Before the Hedge Is Terminated and the Hedger

question 59

Multiple Choice

When the futures expires before the hedge is terminated and the hedger moves into the next futures expiration,it is called

• A)spreading the hedge
• B)rolling the hedge forward
• C)optimally weighting the hedge
• D)all of the above
• E)none of the above

---

Definitions:

Consumer Surplus

The distinction between the total cost consumers are willing to offer for a good or service and the amount they eventually pay.

Surplus II

An excess amount of a product or resource compared to the demand, often resulting in lower prices.

Surplus III

An excess of production or supply over demand, often referring to goods in a market that exceed buyer requirements.

Consumer Surplus

The distinction between the price consumers are inclined to pay for a product or service and what they ultimately pay.