Which of the Following Is a Financial Derivative That Derives

question 16

Multiple Choice

Which of the following is a financial derivative that derives value from specific insurable losses or from an index of values?

• A)commodity futures contract
• B)credit default swap
• C)catastrophe bond
• D)insurance option

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Definitions:

External Equity

Perceived fairness in pay relative to what other employers are paying for the same type of work.

Compensation Process

The set of policies and mechanisms for determining employee pay, benefits, and other forms of remuneration.

Pay Level

A classification denoting the amount of compensation or salary assigned to a job, based on factors like complexity, responsibility, and market rates.

Pay Levels

The ranges of compensation provided to employees, often determined by experience, education, and role responsibilities within an organization.