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Which of the following statements is most likely to be false? A Forward contracts can be customised to suit the needs of the buyer or
Which of the following statements is most likely to be false? A Forward contracts can be customised to suit the needs of the buyer or seller, whereas futures contracts are standardised B An airline company can buy calls on jet fuel to hedge against an increase in the price of jet fuel C Users of futures contracts are in a better position to minimise credit risk than users of forward contracts D An oil producer may use a long position in a put option on oil to hedge against the risk of falling oil price E An investor should buy a put option on interest rate futures in order to hedge against a decrease in interest rates
Which of the following statements is most likely to be false?
A Forward contracts can be customised to suit the needs of the buyer or seller, whereas futures contracts are standardised
B An airline company can buy calls on jet fuel to hedge against an increase in the price of jet fuel
C Users of futures contracts are in a better position to minimise credit risk than users of forward contracts
D An oil producer may use a long position in a put option on oil to hedge against the risk of falling oil price
E An investor should buy a put option on interest rate futures in order to hedge against a decrease in interest rates
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