Identify the Given Random Variable

question 94

Multiple Choice

Identify the given random variable
-The number of oil spills occurring off the Alaskan coast

• A)Discrete
• B)Continuous

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Definitions:

Fair Value Hedge

A hedge that protects against changes in the fair value of an asset, liability, or an unrecognized firm commitment that is attributable to a particular risk.

Forward Contract

A customized contract between two parties to buy or sell an asset at a specified price on a future date.

Annual Interest Rate

The percentage increase in the value of a loan or investment due to interest, calculated on an annual basis.