Which of the Following Methods Is Not Used to Reduce

question 5

Multiple Choice

Which of the following methods is not used to reduce credit risk?

• A)delta-gamma-vega hedging
• B)collateral
• C)marking to market
• D)limiting the amount of business you do with a party
• E)none of the above

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Definitions:

Graphing Calculator

A handheld electronic device capable of plotting graphs, solving simultaneous equations, and performing other tasks with variables.

Factoring

The process of breaking down an equation or number into smaller components that, when multiplied together, give the original equation or number.

Equation

A mathematical statement that asserts the equality of two expressions, usually containing one or more variables.

Factoring

The process of breaking down an expression into a product of its simpler components, often used in algebra to simplify expressions or solve equations.