Question: Note whether the following are ways to avoid losses through hedging or insuring: 1. Lock-in a $979.00 fare home for the holidays. 2. Purchase a

Note whether the following are ways to avoid losses through hedging or insuring: 1. Lock-in a $979.00 fare home for the holidays. 2. Purchase a put option on a stock you do own. 3. Agree to purchase a house in one year for a fixed price of $200,000. 4. Lease a car with an option to purchase it in three years. 5. Enter into a swap contract to exchange fixed interest payments for floating-rate payments because you have floating-rate assets 6. As a wheat grower, enter into a forward contract to sell your wheat in two months at a fixed price set today. 7. Pay a premium for catastrophic health care coverage. 8. Pay for a credit guarantee on a loan you are worried about collecting.

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