Which One of the Following Methods of Setting Prices Would

question 104

Multiple Choice

Which one of the following methods of setting prices would reduce the transactions exposure for both the buyer and seller of a swap contract?

• A) Setting a permanent price at which a commodity will be traded.
• B) Setting the price at the minimum spot price during a given period of time.
• C) Setting the price equal to the spot price on the delivery date.
• D) Using the average market price over a given period of time.
• E) Setting the contract price equal to some percentage, less than 100 percent, of the market price on any given day.

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Definitions:

Controlled

A state or condition where something is regulated or directed, often to maintain a desired level of quality, efficiency, or outcome.

Biological Approach

The biological approach in psychology focuses on understanding human behavior and mental processes through the biological basis of individuals, such as genetics, brain structures, and neurotransmitter activity.

Endocrine System

A collection of glands that produce hormones to regulate metabolism, growth and development, tissue function, and mood among other things.

Neurotransmitters

Chemical messengers in the brain that transmit signals across synapses from one neuron to another, influencing various functions including mood and behavior.