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Qu ×(M Multiple Choice()?N Multiple hoice Qu tructure.com/courses/7977/quizzes/6

ID: 1169928 • Letter: Q

Question

Qu ×(M Multiple Choice()?N Multiple hoice Qu tructure.com/courses/7977/quizzes/60038/take uTube Dashboard PQ Advanced Search Choice Qu X M Multiple Choice O x G A Positive D | Question 14 1 pts A key feature of the futures market that allows the hedging process to transfer risk effectively is the fact that O Prices in the spot market are not generally correlated with prices in the futures market 0 None of the above O Prices in the spot market are generally correlated with prices in the futures market Asset standardization Price standardization D Question 15 1 pts A bond has a coupon rate of 5.5 percent and a face (par) value of $1.000. This bonds

Explanation / Answer

Option A is the fact about the futures market that the prices in the spot market is not generally correlated with the prices in the futures market. So the investors have an option to hedge and transfer the risk to the speculators in the market.