Match the Term with Its Definition

question 39

Essay

Match the term with its definition.Some terms may not be used.
a.Automobile insurance
b.Coinsurance clause
c.Crime insurance
d.Design defect
e.Manufacturing defect
f.Marketing defect
g.Noneconomic damages
h.Partially self-funded program
i.Proximate cause
j.Punitive damages
k.Workers' compensation legislation
-A program that designates part of a firm's earnings to fund a portion of employee medical coverage

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Definitions:

Hedge

Hedging involves making an investment to reduce the risk of adverse price movements in an asset, typically by taking an offsetting position in a related security.

Put Option

An option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.

Interest Rate

The percentage of a sum of money charged for its use, often expressed on an annual basis.

Financial Risk Management

The practice of protecting economic value in a firm by using financial instruments to manage exposure to risk, particularly credit risk and market risk.