The Objective with Transaction-Oriented but Profitable Customer Is to

question 11

Multiple Choice

The objective with transaction-oriented but profitable customer is to

• A)retain them by investing heavily.
• B)capture as much of their business as possible in the short time they buy from a particular company.
• C)reduce the cost to serve them by imposing strict cost controls.
• D)increase the share of these customers' business.
• E)increase the amount of communication with them.

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Definitions:

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.

Hedge Ratio

A ratio used to measure the proportion of a position that is hedged or the amount of assets used to hedge a risk exposure.