This paper circulates around the core theme of You have learned about a number of ways of reducing risk, specifically hedging, insuring, and diversifying. In the table below, place an X in the cell for the technique being used to reduce risk. together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
You
have learned about a number of ways of reducing risk, specifically hedging,
insuring, and diversifying. In the table below, place an X in the cell for the
technique being used to reduce risk.
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Hedging
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Insuring
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Diversifying
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1
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Placing
an advance order with Amazon.ca, which agrees to charge you the lower of the
advance price, and the price at the time your order is filled.
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2
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Purchasing
a call option on a stock you think may go up in price.
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3
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Selling
200 shares of IBM and buying a mutual fund that holds the same stocks as the
S&P index.
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4
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Selling
a debt owed to you for $.50 per dollar owed.
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5
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Agreeing
to a long-term contract with a supplier at a fixed price.
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6
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Agreeing
to a no-trade clause with the sports team that employs you.
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7
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Buying
a Mac and a PC.
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8
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Paying
a clown to perform for your child’s birthday party six months
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