公司理财 习题Chap023.doc

CHAPTER 23 Risk Management: An Introduction to Financial Engineering I. DEFINITIONS HEDGING a 1. _____ is the process of reducing a firm’s exposure to price or rate fluctuations. a. Hedging b. Volatility c. Diversification d. Value minimization e. Translation DERIVATIVE SECURITY b 2. A financial asset that represents a claim to another financial asset is called a(n): a. initial public offering. b. derivative security. c. seasoned equity offering. d. Eurobond. e. subjugated (or junior) stock. RISK PROFILE c 3. A plot showing how the value of a firm is affected by changes in prices or rates is called a: a. security market line. b. net present value profile. c. risk profile. d. scatter plot. e. return grid. TRANSACTIONS EXPOSURE d 4. Short-run financial risk arising from the need to buy or sell at uncertain prices or rates in the near future is called: a. risk maximization. b. volatility maximization. c. economic exposure. d. transactions exposure. e. translation exposure. ECONOMIC EXPOSURE c 5. Long-term financial risk arising from permanent changes in prices or other economic fundamentals is called: a. risk maximization. b. volatility maximization. c. economic exposure. d. transactions exposure. e. translation exposure. FORWARD CONTRACT a 6. A(n) _____ contract is a legally binding agreement between two parties calling for the sale of an asset or product in the future at a price agreed upon today. a. forward b. spot c. swap d. option e. floating PAYOFF PROFILE b 7. A plot showing the gains and losses that will occur on a contract as the result of unexpected price changes is called a: a. risk profile. b. payoff profile. c. security market line. d. scatter plot. e. normal distribution. FUTURES CONTRACT e 8. A forward contract with the feature that gains and losses are realized each day rather than only on the settlement date, is called a(n) _____ contract. a. floating b. spot c. option d. swap e. futures CROS