Hedging by buying an option

Related MCQs

• Option strategy with combination of selling one put option at low strike price and buying put option at a high strike price
• By hedging Portfolio a bank manager
• The hedging strategy which results in exact offsetting of gains and losses in the futures market and physical market is known as
• If the maturity of futures contract mismatchesfuture hedging is known as
• The main disadvantage of hedging with futures contracts as compared to options on futures contractsis that futures
• Hedging risk for a long position is accomplished by
• Hedging risk for a short position is accomplished by
• By hedging a portfolio ; a bank manager
• Which of the following is best described as selling a synthetic asset and simultaneously buying the actual asset?
• The initial amount paid by option buyer at the time of entering the contract