A Firm Can Hedge the Risk of Upward Movement in Raw

question 106

Multiple Choice

A firm can hedge the risk of upward movement in raw material prices by:

• A) buying a call option.
• B) selling a put option.
• C) buying a put option.
• D)selling a futures contract.

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Definitions:

Ring Networks

A network topology where each node is connected to exactly two other nodes, forming a single continuous pathway for signals through each node - a ring.

Data Collisions

Occurrences in network communications where two devices attempt to send information over a network channel at the same time, resulting in a loss of data.

Device

A piece of equipment or hardware designed to perform specific tasks or functions, often electronic in nature.

Network Adapter

A network adapter is hardware within a computer that enables it to communicate over a network, either wired or wirelessly.