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 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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