Using an option to reduce the risk of a portfolio is called ________, while using options to bet on the direction of the market or an asset is called ________
A) hedging, speculation
B) hedging, verification
C) verification, hedging
D) speculation, hedging
Answer: A
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If a company sells products in export markets at prices that are below fair market value and that can harm producers in the export market that company may be accused of:
A) market skimming. B) using offsets. C) pursuing artificially high margins. D) dumping. E) gray marketing.
We classify conflict in three ways; they are ______.
Fill in the blank(s) with the appropriate word(s).
Which of the following statements is true concerning the fraud risk model?
a. Assessing incentive is the first phase of the model. b. The fraud risk model should be reviewed with the audit team. c. The fraud risk model should be modified based on a review of internal controls. d. Auditors do not use a fraud risk model.
Using the standard costs of $5 per pound for a 10 pound bag of chocolate and the following actual cost and usage data, compute the direct materials variance. Direct materials purchased and used 99,000 pounds Price paid for direct materials $4.00 per pound Number of good units produced 9,000 units
a. $45,000 (F) b. $45,000 (U) c. $54,000 (F) d. $99,000 (F)