1. A firm's WACC:
A) Is the proper discount rate for every project the firm undertakes
B) Is used to value all of the firm's existing projects
C) Is a benchmark discount rate that is adjusted for the riskiness of each project
D) Is an informational value only and should never be used as a discount rate
2. One distinguishing difference between the buyer of a futures contract and the buyer of an option contract is that the futures buyer:
A) Pays a much higher premium than option buyers
B) Has an obligation to purchase, not a choice
C) Can lose no more than initial premium
D) Has increased rather than reduced risk