Forward and Future Contracts, as Well as Options, Are Types

question 47

True/False

Forward and future contracts, as well as options, are types of derivative securities.

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Definitions:

Variable Nature of Services

Describes the characteristics of services that make them less consistent and more difficult to standardize compared to physical products.

Intangible

Refers to something that cannot be physically touched or measured but holds value, such as intellectual property, brand reputation, or goodwill.

Pure Product

A good that is not altered or combined with any other goods, offered in its simplest form in the market.

Inseparability

A characteristic of services indicating that they cannot be separated from their providers, both must be present for the service to be delivered.