问题如下:
If a company accept some risk exposure, it will then:
选项:
A.purchase insurance.
B.hedge by a derivative contract.
C.make a reserve fund to deal with possible losses.
解释:
C is correct.
Risk acceptance is similar to self-insurance. The self-insured entity may simply accept the risk or set up a reserve to cover the losses. Buying insurance is a form of risk transfer, and hedging with derivatives is risk-shifting.
为什么选C呢