________ Is the Use of Derivative Securities to Take Positions

question 13

Multiple Choice

________ is the use of derivative securities to take positions in financial markets that offset the underlying sources of risk that arise in a company's normal course of business.

• A) Hedging
• B) Risk management
• C) Asset securitization
• D) Option premium

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Definitions:

Thromboxanes

Lipid compounds that play a role in the blood clotting process by causing platelets to clump and blood vessels to constrict.

Fibrinogen

A soluble plasma glycoprotein that is converted to fibrin by thrombin during blood clot formation.

Plasmin

Enzyme derived from plasminogen; dissolves clots by converting fibrin into soluble products.

Fibrin

A fibrous, non-globular protein produced in the blood clotting process, essential for wound healing.