Clifton Is Supervisor at His Company

question 1

Multiple Choice

Clifton is supervisor at his company. He is also a member of a tennis club that some of his associates from work are a part of. He encourages the less confident members of his tennis group. He often gives his tennis group members information about upcoming matches. He keeps aware of new exercises that tennis professionals are using to stay in shape and shares that information with the group. Which part of this description speaks of social roles?

• A) Clifton is supervisor at his company.
• B) He is also a member of a tennis club that some of his associates from work are a part of.
• C) He encourages the less confident members of his tennis group.
• D) He often gives his tennis group members information about upcoming matches.

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Definitions:

Basis Risk

The risk that the price of a hedge and the asset being hedged will not move in perfect correlation.

Call Option

A financial arrangement granting the buyer the freedom, but not the duty, to acquire an asset such as a stock, bond, commodity, at a set price within an established timeframe.

Credit Default Swap

A financial derivative that allows an investor to swap or offset credit risk with another party.

Cross Hedging

A risk management strategy that involves hedging a position in one asset by taking a position in another asset with correlated price movements.