Which of the Following Is an Unwritten Promise to Pay

question 31

Multiple Choice

Which of the following is an unwritten promise to pay for credit purchases or services?

• A)Debt collection
• B)Cost ratio  
• C)Accounts payable
• D)Cost accounting

---

Definitions:

Hedge Ratio

The ratio used to manage risk in financial portfolios, determining the size of a position required to offset potential losses.

Dollar Exposure

The extent to which a company or investment is affected by changes in the US dollar value, particularly in foreign exchange risk.

Call Delta

A measure of the sensitivity of an option's price to a change in the price of the underlying asset.

Volatility Risk

The risk in the value of options portfolios due to unpredictable changes in the volatility of the underlying asset.