Using each of the following definitions, identify which term or concept presented in this chapter matches them.
a. Using financial tools to protect against fluctuations in financial asset prices or interest rates.
b. The spread between the spot and forward prices of a financial asset.
c. Contracts applying to the forward sale of assets at a price set when the contract is made.
d. Simultaneous purchase and sale of stocks and futures contracts in order to profit from temporary price differences.
e. Purchase of futures contracts.

Question

Using each of the following definitions, identify which term or concept presented in this chapter matches them.
a. Using financial tools to protect against fluctuations in financial asset prices or interest rates.
b. The spread between the spot and forward prices of a financial asset.
c. Contracts applying to the forward sale of assets at a price set when the contract is made.
d. Simultaneous purchase and sale of stocks and futures contracts in order to profit from temporary price differences. 
e. Purchase of futures contracts.

Quizplus · Accepted Answer

The Answer of Using each of the following definitions, identify which term or concept presented in this chapter matches them.
a. Using financial tools to protect against fluctuations in financial asset prices or interest rates.
b. The spread between the spot and forward prices of a financial asset.
c. Contracts applying to the forward sale of assets at a price set when the contract is made.
d. Simultaneous purchase and sale of stocks and futures contracts in order to profit from temporary price differences. 
e. Purchase of futures contracts.

Using Each of the Following Definitions, Identify Which Term or Concept