Question
Which of the following risk factor is not among the factors that lead to the crash of Long Term Capital Management hedge fund? A. Model
Which of the following risk factor is not among the factors that lead to the crash of Long Term Capital Management hedge fund?
A. | Model risk | |
B. | Liquidity risk | |
C. | Market risk | |
D. | Cyber risk |
Which of the following is NOT true?
A. | Futures contracts are traded on exchanges, but forward contracts are not. | |||||||||||||
B. | Delivery or final cash settlement usually takes place with futures contracts; the same is not true of forward contracts. | |||||||||||||
C. | Forward contracts usually have one specified delivery date; futures contract often have a range of delivery dates. | |||||||||||||
D. | Futures contracts are standardized; forward contracts are not.
CME Group oats futures trade with March, May, July, September, December as a delivery months. Blue Lake Inc. is hedging the purchase of oats in October. Which futures contract should it use?
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