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Derivatives activities in end users are primarily...




Derivatives activities in end users are primarily conducted by Answer a. the human resources group b. the sales staff c. the chief financial officer d. the board of directors e. the treasury group Which of the following best describes a company that practices enterprise risk management? Answer a. interest rate risk and currency risk would be managed in unison b. a single department to manage risk c. it would manage insurance-related risks along with financial risk d. credit risk would be managed the same way as market risk e. operational risk would be managed Ultimate authority for risk management lies with Answer a. legal counsel b. the head trader c. senior management d. the internal auditors e. the external auditors A transaction that exploits differences in the theoretical and actual values of a foreign currency forward or futures contract is called Answer a. covered interest arbitrage b. triangular arbitrage c. a conversion d. interest-rate parity e. none of the above The cost of carry consists of all the following except Answer a. the risk?free rate b. the cost of storage c. insurance on the asset d. the risk premium e. none of the above


Paper#6854 | Written in 18-Jul-2015

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