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Question

Define each of the foloowing  terms:

a. Derivatiive 

b. Corporate Risk Management

c. Financial Future

d. Hedging, natural hege

e. Commodity  Futures

Give two reason stockholders  might be indifferent between owning the stock of  a firm  with stable cash flow  and that of a firm  with stable cash flow.

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Solution Preview

A derivative is a security with a value that is needy upon or got from one or all the more basic resources. The derivative itself is an agreement between two or more parties based upon the advantage or resources. Its esteem is dictated by variances in the basic resources

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