List seven reasons risk management might increase the value of a firm.
18-2 Why do options typically sell at prices higher than their exercise values?
18-3 Discuss some of the techniques available to reduce risk exposure.
18-4 Explain how the futures markets can be used to reduce interest rate and input price risk.
18-5 How can swaps be used to reduce the risks associated with debt contracts?
18-6 Give two reasons stockholders might be indifferent between owning the stock of a firm with volatile cash flows and that of a firm with stable cash flows
