The exposure of a futures hedge in which there is a match with the underlying position on maturity but not on currency is called a ______.
A) cross-hedge
B) delta-cross-hedge
C) delta-hedge
D) perfect hedge
E) None of the above

Question

Quizplus · Accepted Answer

The term "cross-hedge" is used to describe a futures hedge in which there is a match with the underlying position on maturity but not on currency. This means that the futures contract is based on a different currency than the underlying asset being hedged.

The Exposure of a Futures Hedge in Which There Is