A forward contract that pays ln(ST/S₀)and can be used to hedge or speculate on variance is called a ________ contract.
A) Growth
B) Log
C) Variance
D) Volatility

Name: A forward contract that pays ln(ST/S₀)and can be used to hedge or speculate on variance is called a ________ contract. A) Growth B) Log C) Variance D) Volatility
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Question

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A log contract is a forward contract that pays ln(ST/S₀)and can be used to hedge or speculate on variance.

A Forward Contract That Pays Ln(ST/S₀)and Can Be Used to Hedge