A ________ is an asset or a position whose value moves in the equal but opposite direction of the exposure.
A)net
B)lag
C)lead
D)forward contract
E)hedge

Question

Quizplus · Accepted Answer

A hedge is a risk management strategy that involves taking a position in an offsetting asset or security to reduce the risk of adverse price movements in an asset or liability. Therefore, a hedge is an asset or position that moves in the opposite direction to the exposure, making it the correct answer. Net, lag, and lead do not accurately describe this concept, and a forward contract is a specific type of hedging instrument.

A ________ Is an Asset or a Position Whose Value