Why are managerial controls over option and forward trading departments vital to proper risk control?
What will be an ideal response?
Answer:
Hedging requires matching derivative trading activities with the operations of the company. Trading that is not matched to the firm's business is speculation and increases the firm's risk.
You might also like to view...
The auditor would be most likely to request a schedule of repairs and maintenance expense to satisfy the auditor about the existence of long-lived assets
a. True b. False Indicate whether the statement is true or false
Smart fraudsters will avoid financial statement fraud involving the overstatement of ____ because of the compounding effect from period to period
a. revenue b. accounts receivable c. inventory d. fixed assets
A value analysis is defined as a:
A. way to save costs while using cheaper products. B. listing of those products with the lowest prices. C. determination of the best product for the money. D. way to save costs while using high-end products. E. listing of those products with the highest prices.
A _______ is a ruling by the court that no trial is necessary because there are no essential facts in dispute
a. default judgment b. long-arm statute c. federal question d. summary judgment