A futures position that is equal, but opposite, the position you have in the underlying asset defines which one of the following terms?
A)short hedge
B)long hedge
C)full hedge
D)partial hedge
E)underlying hedge

Question

Quizplus · Accepted Answer

A full hedge involves taking a futures position that is equal in size but opposite in direction to an existing position in the underlying asset. This strategy is used to offset the risk associated with the price movements of the underlying asset.

A Futures Position That Is Equal, but Opposite, the Position