A disadvantage of real asset hedges is that ______.
A) bid-ask spreads can be large
B) daily marking to market can cause cash flow mismatches
C) option premiums can be large
D) they are unlikely to be zero-NPV transactions
E) they come in only a limited number of currencies and maturities

Question

Quizplus · Accepted Answer

The Answer of A disadvantage of real asset hedges is that ______.
A) bid-ask spreads can be large
B) daily marking to market can cause cash flow mismatches
C) option premiums can be large
D) they are unlikely to be zero-NPV transactions
E) they come in only a limited number of currencies and maturities

A Disadvantage of Real Asset Hedges Is That ______