Which of the Following Correctly Expresses the Profit on a Hedge

question 14

Multiple Choice

Which of the following correctly expresses the profit on a hedge?

• A)the basis when the hedge is closed
• B)the change in the basis
• C)the spot profit minus the futures profit
• D)the futures profit minus the spot profit
• E)none of the above

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Definitions:

Interior Decorator

A professional who specializes in designing and arranging the inside spaces of homes and buildings to enhance aesthetics and functionality.

Bookcases

Furniture designed to store and display books, typically consisting of horizontal shelves.

Supplier-customer Combinations

Various possible pairings or relationships between suppliers and customers in a market or supply chain.

Mutually Exclusive

Events that cannot happen simultaneously.