Though a Cross Hedge Has Somewhat Higher Risk Than an Ordinary

question 7

Multiple Choice

Though a cross hedge has somewhat higher risk than an ordinary hedge,it will reduce risk if which of the following occurs?

• A)futures prices are more volatile than spot prices
• B)the spot and futures contracts are correctly priced at the onset
• C)spot and futures prices are positively correlated
• D)futures prices are less volatile than spot prices
• E)none of the above

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Definitions:

Women's Lives

Refers to the historical, social, and cultural studies focusing on the roles, experiences, and influences of women in society.

Greek Society

Refers to the societal structure, practices, and cultures of ancient Greece, characterized by city-states like Athens and Sparta.

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A horizontal band above the columns in Ionic architecture, often decorated with sculptures or reliefs depicting various scenes.

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