A Hedge That Involves the Use of a Futures Contract

question 1

True/False

A hedge that involves the use of a futures contract on an instrument that is different from the instrument being hedged is called a cross hedge.

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Definitions:

Conservation

The principle in cognitive development that recognizes the ability to understand that redistributing material does not affect its mass, number, or volume.

Accommodation

In psychology, accommodation refers to adjusting one's schemas and perceptions to incorporate new information, as described by Jean Piaget in his theory of cognitive development.

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or touched, typically developed during infancy.

Assimilation

The process of integrating new information into existing cognitive schemas, perceptions, and understanding.