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1. A short hedge is one in which (Points : 1) the margin requirement is waived t

ID: 2501315 • Letter: 1

Question

1. A short hedge is one in which (Points : 1)        the margin requirement is waived
       the hedger is short futures
       the hedger is short in the spot market
       the futures price is lower than the spot price
       none of the above

Question 2. 2. An anticipatory hedge is one in which (Points : 1)        the basis is expected to fall
       the hedger expects to make a profit on the futures
       the spot position will be taken in the future
       all of the above
       none of the above

Explanation / Answer

1. A short hedge is one in which (Points : 1) the margin requirement is waived t