Question 1 Which of the following statements is correct in relation to risk management? More than one of the other statements is correct in relation to risk management. Derivatives, such as options and forwards, can only be used for risk management purposes. None of the other statements is correct in relation to risk management. O Due to the high cost of hedging, firms should try to reduce their total exposure via natural hedges. O Value-at-Risk is an approach used to quantify the downside risk faced by firms. 2 pts