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Question 59. 59. Metalgesellschaft lost about $1.3 billion doing what? (Points :

ID: 2654442 • Letter: Q

Question

Question 59.59. Metalgesellschaft lost about $1.3 billion doing what? (Points : 1)        hedging short-term commitments with long-term options
       using crude oil futures options to hedge crude oil futures
       trading futures spreads on crude oil
       hedging fixed rate oil price commitments with swaptions
       none of the above Question 60.60. "Independent risk management" means which of the following? (Points : 1)        that risk management of a firm is independent of its overall corporate policy decisions
       that the risk management function is provided by an outside consulting firm
       that the risk manager cannot be influenced by the traders
       that the risk manager is independent of the firm's senior managers
       none of the above Question 61.61. End users are all of the following types of organizations except? (Points : 1)        investment funds
       non-financial corporations
       governments
       financial institutions
       none of the above Question 59.59. Metalgesellschaft lost about $1.3 billion doing what? (Points : 1)        hedging short-term commitments with long-term options
       using crude oil futures options to hedge crude oil futures
       trading futures spreads on crude oil
       hedging fixed rate oil price commitments with swaptions
       none of the above

Explanation / Answer

Answer 59. Metalgesellschaft lost $ 1.3 billion hedging short-term commitments with long-term options.

Answer 60. Independent Risk Management means that the risk management function for a Company is provided by an outside consulting firm.

End Users are all of the following types of organisations except Investment Funds.

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