Question: What is the second step in a risk management process? Group of answer choices Identification of risks Choosing risk management methods Implementation of the chosen

What is the second step in a risk management process?

Group of answer choices

Identification of risks

Choosing risk management methods

Implementation of the chosen methods and monitoring the risk management program

Evaluation of frequency and severity of losses

Rainbow Inc.'s six-month European put options are just traded over the counter. The exercise price of those options is $50. The current spot price is $52. Each option sells for $5. Which of the following is CORRECT?

I. The short position bears current credit risk.

II. The long position bears potential credit risk now.

III. Neither long nor short position bears current credit risk now.

Group of answer choices

II only

I only

II and III only

III only

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