Hedging with Futures Contracts Entails All of the Following Risks,except

question 27

Multiple Choice

Hedging with futures contracts entails all of the following risks,except

• A)marking to market may require large cash outflows
• B)changes in margin requirements
• C)basis risk
• D)quantity risk
• E)all of the above are potential risks

---

Definitions:

Heterosexual

Attraction to and sexual relations between individuals of the opposite sex.

Gamete

A mature haploid male or female germ cell that is able to unite with another of the opposite sex in sexual reproduction to form a zygote.

Condom

A contraceptive device usually made of latex or polyurethane, worn on the penis or inserted into the vagina to prevent pregnancy and reduce the risk of sexually transmitted infections.

Orchidotomy

A surgical procedure involving the removal of one or both testicles.