276 125% 7. Assume the firm has a downward sloping risk profile with respect to crude oil price (i.e. with crude oil price as the x-axis). Which one of these statements correctly describes the instruments that the firm can use to hedge the risk exposure to crude oil price? A) The firm can take a long position in a forward contract whose payoff profile is downward sloping B) The firm can take a short position in a forward contract whose payoff profile is upward sloping C) The firm cannot use futures contracts because futures contracts settle daily D) The firm's hedge portfolio can consist of options, swaps and futures E) If the firm takes a long position in a call option on crude oil, it will eliminate both downside risk and upside potentidl. 8. One goal of the Tax Cuts and Jobs Act of 2017 is to encourage corporations to: A) Claim all overseas profits as U.S. profits to avoid paying taxes to foreign governments. B) Bring their overseas cash back to the U.S. at a one-time tax rate of 35% percent. C) Distribute all of their overseas profits as dividends to avoid all U.S. taxes. D) Bring all of their foreign assets back to the U.S. by paying a one-time tax rate of 15.5 percent on those assets, E) Repatriate their untaxed overseas profits. pe O A e 4:20 5/22 O Search