In the Derivatives Markets, the Instrument with the Longest Potential

question 81

Multiple Choice

In the derivatives markets, the instrument with the longest potential maturity is

• A)options.
• B)futures.
• C)forwards.
• D)swaps.
• E)currencies.

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Definitions:

Unreasonably Dangerous

A term used to describe products or activities that pose a risk of harm beyond what would be contemplated by an ordinary person under normal usage.

Defective Product

A product that is not safe for its intended use due to a design, manufacturing, or marketing defect, potentially leading to legal liability for the manufacturer.

Section 402A

A specific provision of the Restatement (Second) of Torts, establishing the manufacturer's liability for harm caused by defective products.

Implied Warranty of Merchantability

An assurance that a product will meet a reasonable level of quality and reliability for the purpose it was sold for.