Which One of the Following Terms Is Correctly Identified

question 190

Multiple Choice

Which one of the following terms is correctly identified?

• A) Caption: a price cap on a call option.
• B) Floor: a call option on an interest rate.
• C) Derivative: an asset with a value that is derived from some specified future event.
• D) Swaption: an option to exchange a floating-rate loan for a fixed-rate loan.
• E) Cross-hedge: an agreement to exchange specified cash flows at specified time intervals in the future.

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Definitions:

Small Government

A political ideology advocating for a minimal role of the government in economic affairs and limited regulatory oversight.

Election Laws

Regulations and legal standards governing the conduct of elections and the selection of public officials.

Cultural Positions

Refers to the established places or stances that people or societies hold within cultural practices, beliefs, and traditions.

Economic Positions

Refers to the stances or policies taken by individuals, parties, or governments regarding economic issues, such as taxation, government spending, and regulation.