1. Which of the following is NOT a source of financial risk?

A. Commodity price fluctuations.

B. Equity price fluctuations.

C. Exchange rate fluctuations.

D. Liquidity fluctuations.

E. Interest rate fluctuations.

2. When we draw a graph showing that the value of Air Canada decreases as the price of oil increases, this is an example of a ________.

A. Risk profile.

B. Risk frontier.

C. Risk map.

D. Volatility map.

E. Volatility index.

3. The payoff profile resulting from a perfect hedge with a forward contract is _________.

A. A downward-sloping curve.

B. An upward-sloping curve.

C. A downward-sloping straight line.

D, A horizontal straight line.

E, An upward-sloping straight line.