Which Type of Contract Is Unique in That It Protects

question 34

Multiple Choice

Which type of contract is unique in that it protects the owner against unfavorable movements in the prices or rates while allowing the owner to benefit from favorable movements?

• A) Interest rate swap
• B) Forward contract
• C) Futures contract
• D) Option

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Definitions:

Intellectual Disability

A state defined by notable restrictions in intellectual capabilities as well as in adaptive behavior, encompassing everyday social and practical abilities.

Stereotype Threat

The risk of confirming negative stereotypes about an individual's racial, ethnic, gender, or cultural group, which can hinder performance.

Math Problem-Solving

The process of using mathematical methods and techniques to address and solve problems or equations.

Emotional Uncertainty

The feeling of confusion or ambiguity regarding one's own emotions or how to interpret the emotions of others.