In 2012, Knight Capital Group almost went bankrupt after a faulty code change for routing retail customer orders caused the firm to enter a flood of erroneous orders into the market shortly after the trading day began. The risk shown in this example is

Group of answer choices

political risk.

model risk.

operational risk.

regulatory risk.

Which of the following is a loss prevention method?

Group of answer choices

Take a safe driving course and drive defensively.

Invest in different assets to reduce investment risk.

Purchase an auto insurance with a $500 deductible and at the same time deposit $500 in a saving account to prepare a loss up to $500.

Take an emergency water landing after a plane loses two engines.

The horizontal and vertical axes of a payoff graph cross at the point (0, 0) for a future contract. Suppose the quantity of this future contract is 1 pound. Whats the value of the point crossing the horizontal axis in the short future payoff graph?

Group of answer choices

It equals spot price future price.

It equals negative of spot price.

It equals negative of future price.

It equals future price.