Indicate the incorrect statement
(i) Credit risk is a loss on account of a default of repayment of a loan.
(ii) Liquidity risk is the risk on account of the mismatches of cash inflow and outflow in a firm.
(iii) Basic risk is the risk in a firm owing to the differences in the index to which financial assets and liabilities are tied up.
(iv) Hedging risk for a long position is accomplished by taking a short position and vice versa.

A. (i) and (ii)

B. (ii) and (iii)

C. (iii) and (iv)

D. All of the above

Answer: Option D