Hedging with futures contracts entails all of the following risks,except
A)marking to market may require large cash outflows
B)changes in margin requirements
C)basis risk
D)quantity risk
E)all of the above are potential risks

Question

Quizplus · Accepted Answer

All the options listed (marking to market, changes in margin requirements, basis risk, and quantity risk) are potential risks associated with hedging using futures contracts.

Hedging with Futures Contracts Entails All of the Following Risks,except