21. Which of the following correctly expresses the profit on a hedge? (Points :
ID: 2756122 • Letter: 2
Question
21. Which of the following correctly expresses the profit on a hedge? (Points : 1) the basis when the hedge is closed
the change in the basis
the spot profit minus the futures profit
the futures profit minus the spot profit
none of the above
it initially increases, then decreases
it remains relatively steady
it moves toward zero
none of the above
Explanation / Answer
21. Which of the following correctly expresses the profit on a hedge? (Points :