A Way to Hedge Risk Is to Use

question 32

Multiple Choice

A way to hedge risk is to use:

• A)derivatives.
• B)futures.
• C)options.
• D)All of the Answer s are correct.

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Definitions:

Aligned Relative

The positioning of objects in a specific orientation or direction in relation to each other.

Low Tides

The state of the tide when the water level is at its lowest point, occurring between two high tides in a tidal cycle.

High Tides

Periodic rise and fall of sea levels caused by the gravitational forces exerted by the moon and sun in combination with the rotation of Earth.

Spinning Globe

A representation of the Earth that rotates on an axis, often used as a model to illustrate global geography and rotation.