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

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Definitions:

Insider Trading

Engaging in covert transactions on the stock market for personal benefit by exploiting privileged information.

Telecommunications

Telecommunications refers to the transmission of information over distances through electronic means, including telephone, radio, television, and internet communications.

Stock Trade

A Stock Trade involves the buying or selling of shares in a company through a stock market, reflecting the transfer of ownership in hopes of gaining a profit.

Check Kiting

The illegal act of exploiting the float to make use of non-existent funds in a checking or other bank account.