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1. Identify the one true statement about the hedging with financial markets: (a) The daily trading volume of the FX market is about two times

1. Identify the one true statement about the hedging with financial markets: (a) The daily trading volume of the FX market is about two times larger than the

daily trading volume of the equities market

(b) Forward contracts are generally more liquid and available for trading than similar futures contracts

(c) A zero-initial-value financial instrument for hedging purposes cannot increase the firms value today

(d) It is possible to hedge non-linear exposure with financial instruments such as options

(e) None of the above

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