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Which of the following is not a component or example of hedging or price-fixing? The value of these components may be positive or negative, depending
Which of the following is not a component or example of hedging or price-fixing?
The value of these components may be positive or negative, depending on movements and shifts in yields, currency levels or spot prices.
The relative value at the time of issuance of the derivative security is zero.
Consist of interest rate floors and caps, call and put options.
Consist of forward, future contracts, interest rates and currency swaps.
Generally have little upfront cost and are the most efficient type of hedging contract.
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