What types of Commodity Trading Firms (CTFS) are best able to "self hedge"? 11. a. Horizontally integrated firms b. Small firms who specialize in one product c. Firms with high marginal costs d. Vertically integrated firms What is required to implement a VaR strategy? 12. a. a choice of a probability level and a time horizon b. a perfect knowledge of future prices c. an exact model of future market risk d. an exact model of basis prices Placing trading limits on a trader is an example of what type of internal control? 13. a. Segregation of Duties b. Approvals, Authorizations, and Verifications c. Contract Confirmation d. Control Queries What is Value at Risk (VaR)? 14. a. risk of counterparty performance b. risk of clearinghouse default c. risk of counterparty funding d. the amount of money that can be lost over a given time horizon with a given probability Which area of a trading firm would be in charge of the controls of weekly funding forecasting, stress 15. funding analysis, and stress funding contingency planning? A. Settlement B. Liquidity Management C. Financial Reporting. D. B and C only E. All of the above