When the maturity matches but the size of the futures does not match, the hedge can be

Related MCQs

• The main disadvantage of hedging with futures contracts as compared to options on futures contractsis that futures
• The main advantage of using options on futures contractsrather than the futures contracts themselvesis that
• The main reason to buy an option on a futures contract rather than the futures contract is
• Futures markets have grown rapidly because futures
• If the maturity of futures contract mismatchesfuture hedging is known as
• Which of the following does the most to reduce default risk for futures contracts?
• when the gains or losses in the futures do not exactly offset the loss/gainsin the physical market
• The type of hedge used by those who are short on the underlying asset
• The hedging strategy which results in exact offsetting of gains and losses in the futures market and physical market is known as
• The total number of futures/option contracts outstanding at the close of the previous day’s trading is