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Q5-Which of the following statement is not correct? Select one: a.commodity futures can be used to hedge against input price increases. b.a swap is an
Q5-Which of the following statement is not correct? Select one: a.commodity futures can be used to hedge against input price increases. b.a swap is an exchange of cash payment obligations. c.risk management might increase the value of a firm. d.a hedge is a transaction that lowers risk. e.short hedges involve selling futures contracts to guard against price increase. Q6-Which of the following is not the risk event related to financial management category. Select one: a.interest rate risk. b.customer credit risk. c.foreign exchange risk. d.liquidity risk. e.acts of terrorism. Q7-Monte Carlo simulation can be used to project cash flows. Cash flow projection depends on a number of variables, which of the following variable should not be considered? Select one: a. variable costs. b. variable productivity. c.variable interest rate d.variable demand. p.other factors such as variable exchange rates
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