Question: 1. Hedging in financial managing is: Building a process border around financial management functions. Combining a risky financial position with a similar equally risky position.

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.

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

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

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