Meaning CROSS HEDGING: Applies to derivative products. Hedging with a futures contract that is different from the underlying being hedged. Use of a hedging instrument different from the security being hedged. Hedging instruments are usually selected to have the highest price correlation to the underlying
More terms such as Cross hedging in Dictionary C.
- Definition Coverage Ratios:
- Examples Ratios used to test the adequacy of cash flows generated through earnings for purposes of meeting debt and lease obligations, including the interest coverage ratio and the fixed-charge coverage ratio cross hedging definition.
- Definition Covered Call:
- Examples position in which the writer owns the number of shares of the underlying stock represented by the option contracts. Covered calls generally limit the risk the writer takes because the stock does not cross hedging explain.
- Definition Convention Statement:
- Examples filed by a life insurance company in each state where it does business in compliance with that state's regulations. The statement and supporting documents show, among other things, the assets cross hedging what is.
- Definition Calendar Spread:
- Examples Applies to derivative products. A strategy in which there is a simultaneous purchase and sale of options of the same class at different strike prices, but with the same expiration date cross hedging meaning.
- Definition Conventional Pass-Throughs:
- Examples Also called private-label pass-throughs, any mortgage pass-through security not guaranteed by government agencies. Compare agency pass-throughs cross hedging abbreviation.
