[Solved] Using options to reduce risk is called: A)speculation. B)a naked position. C)hedging. D)a covered position. Journal Entry: A record of a financial transaction in the accounting system that includes the date, accounts affected, amounts, and description of the transaction. Callable Bonds: Bonds that can be redeemed by the issuer before their maturity date at a specified price, usually at a premium to the face value. Market Rate: The prevailing interest rate available in the marketplace for instruments of similar credit risk and maturity. Face Value: The nominal or dollar value printed on a bond, bill, or other financial instrument, representing the amount to be repaid at maturity.