When hedging with options, what is the cost to enter into your hedging position?
A. The basis.
B. The maintenance margin.
C. The strike price.
D. The option premium.
Answer: D. The option premium.
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What are the primary causes of armed conflict in developing countries and what increases the risk factor for these conflicts?
What will be an ideal response?
Which elasticity measures producers' responsiveness to a change in price?
A. Price elasticity of demand B. Cross-price elasticity C. Price elasticity of supply D. Income elasticity of supply
If a perfectly competitive industry is taken over by a monopolist, the market price will rise
a. due to improvements in technology b. assuming that technology is unchanged c. and output will rise d. unless barriers to entry are imposed e. until they equal marginal revenue
At the point where diminishing marginal returns of an input sets in, the:
A. Average product starts to decrease B. Marginal product starts to decrease C. Total product starts to decrease D. Average product exceeds the marginal product