Fund Managers Engage in the Following Strategies in Order to Minimize

question 39

Multiple Choice

Fund managers engage in the following strategies in order to minimize their risk exposures.

• A) SWAPs
• B) options call and put options.
• C) futures Forwards
• D) all of the above

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Definitions:

BATNA

Best Alternative to a Negotiated Agreement; the best option one has if current negotiations fail.

Fixed-Pie Bias

The misconception in negotiations that the 'pie' or total available benefit is fixed, leading to competitive rather than cooperative strategies.

Conflicts of Interest

Situations where an individual's or organization's private interests conflict with their professional duties or responsibilities, leading to potential bias or unethical decisions.

Intraorganizational Bargaining

The negotiating process within an organization aimed at resolving differences or aligning strategies between various stakeholders, such as management teams, departments, or divisions.