If A is the position in the derivative, B is the position in the underlying security, and C is a fixed- interest loan, if a player holds B and wishes to hedge her position then she can:
A) buy A.
B) buy C.
C) sell C.
D) sell A.

Question

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The Answer of If A is the position in the derivative, B is the position in the underlying security, and C is a fixed- interest loan, if a player holds B and wishes to hedge her position then she can:
A) buy A.
B) buy C.
C) sell C.
D) sell A.

If a Is the Position in the Derivative, B Is