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A Money Market Hedge

Question 9

Multiple Choice

A money market hedge:


A) involves borrowing one currency on a short-term basis and converting it to another currency immediately.
B) is the hedging technique in which money market instruments are hedged by taking a long position in subordinate tranches and a short position in senior tranches.
C) is the practice of selling less than one financial contract to hedge one unit of the spot assets.
D) is the acquisition of financial instruments that alter the factor betas of the firm?s equity return in order to reduce the firm's equity return risks.

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