Which of the Following Statements About Derivatives Is Correct

question 44

Multiple Choice

Which of the following statements about derivatives is correct?

• A) Both futures and options represent zero-sum games.
• B) Futures represent a zero-sum game, but options do not.
• C) Options represent a zero-sum game, but futures do not.
• D) Neither options nor futures represent a zero-sum game.

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Definitions:

Just-world Phenomenon

is the cognitive bias to believe that the world is fair and people get what they deserve, often used to rationalize injustice.

Unconscious Patronization

Subtle, often unintentional, discriminatory behavior towards a marginalized group, influenced by unconscious biases.

Ingroup

A social group to which a person psychologically identifies as being a member, often leading to favoritism and loyalty towards the group.

Outgroup

A social group with which an individual does not identify, often leading to them being viewed as "them" in contrast with the "us" of the ingroup.