Compared with Fixed- Rate Derivatives Such as Futures, an Option

question 56

Multiple Choice

Compared with fixed- rate derivatives such as futures, an option:

• A) is less expensive but less flexible.
• B) is more expensive and less flexible.
• C) is more expensive but more flexible.
• D) is less expensive and more flexible.

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Definitions:

Liquidity Ratios

Financial metrics that measure a company's ability to meet its short-term obligations using its most liquid assets.

Balanced Scorecard

A strategic planning and management system used to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organizational performance against strategic goals.

Mission and Vision

Statements that articulate a company's purpose and aspirations, guiding its strategy, goals, and organizational culture.