Question: Risk exposure can be managed using derivative securities. The following is true about derivative securities. Select one: a. Derivatives are risk management products (tools) to

 Risk exposure can be managed using derivative securities. The following is

Risk exposure can be managed using derivative securities. The following is true about derivative securities. Select one: a. Derivatives are risk management products (tools) to mitigate possible risk exposure faced by companies, investors and financial institutions. b. Derivatives may be used to manage or mitigate risk exposure as a result of adverse movement in interest rates, exchange rates, share price and commodity price. O c. There are four generic types of derivative instruments: forward contacts, futures contracts, options contracts and swap contracts d. All of the given answers

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