What is 'cross-asset hedging' and provide an example?

• A. Cross-asset hedging hedges risk in one asset with the same asset.
• B. Cross-asset hedging uses hedges across assets in the same class even if uncorrelated.
• C. Cross-asset hedging hedges risk in one asset with another uncorrelated asset.
• D. Cross-asset hedging hedges risk in one asset with another correlated asset; e.g., hedging equity risk with futures on a broad index.

Answer: (D)