1. Hedging in financial managing is:

1. Building a process border around financial management functions.
2. Combining a risky financial position with a similar equally risky position.
3. Balancing a risky financial position with an opposite position to cancel out the risk.
4. Taking a position in a derivative security with financial risk unrelated to the risk in the business.

2. If a financial manager uses a hedging technique but has none of the associated risk, the financial manager is:

1. Hedging.
2. Matching.
3. Speculating.
4. Investing.

3. What are the five C's?

4. According to the book, what are the four basic types of derivatives?

5. According to the book, the primary supplier of forward