1. If the market remains flat, we can still earn a profit in this scenario.

   True

   False

2. Hedging with options always works perfectly.

   True

   False

3. Hedging with futures always works perfecty.

   True

   False

4. If we calculated a hedge ratio to be 20 futures contracts and we only wanted a 50% hedge, we could simply short 10 contracts.

   True

   False

5. A hedge may be a good strategy when you think a large market dip might be forthcoming.

   True

   False