Between Sessions, Clients Are Often Given Things to Work On These

question 21

Multiple Choice

Between sessions, clients are often given things to work on. These are known as:

• A) A waste of time
• B) Self-therapeutic training
• C) Mind tricks
• D) Homework assignments

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Definitions:

Hedge

An investment made to reduce the risk of adverse price movements in an asset, often involving derivatives like options and futures.

Basis Risk

Risk attributable to uncertain movements in the spread between a futures price and a spot price.

Short Hedger

An investor who enters into futures contracts to protect against potential price declines in an asset they hold.

Futures Price

The agreed-upon price for the sale/purchase of an asset at a future date, as determined in a futures contract.