All of the Following Are Futures Contract Choice Decisions Related

question 47

Multiple Choice

All of the following are futures contract choice decisions related to hedging,except

• A)which future underlying asset
• B)which strike price
• C)which futures contract expiration
• D)whether to go long or short
• E)all of the above are futures contract choice decisions

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Definitions:

Externalities

Costs or benefits that affect a party who did not choose to incur those costs or benefits, often leading to market failure if not addressed.

Allocation of Resources

The process of distributing available resources among various uses or projects in order to achieve desired outcomes or maximize efficiency.

Political Decision-Makers

Individuals or bodies responsible for making policies and decisions that guide the political direction of a country, region, or organization.

Well-being

The state of being comfortable, healthy, or happy; often considered in terms of physical, psychological, and social aspects.