A fiNancial Contract That Gives Its Owner the Right, but Not

question 224

Multiple Choice

A financial contract that gives its owner the right, but not the obligation, to buy or sell a specified asset at an agreed-upon price on or before a given future date is called a(n) :

• A) Option contract.
• B) Futures contract.
• C) Forward contract.
• D) Swap contract.
• E) Straddle contract.

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Definitions:

Recycled Content

Materials that have been recovered or diverted from the waste stream and are used to make new products, reducing the need for virgin resources.

Energy Consumption

The total amount of energy used by a system, facility, or process, often measured in kilowatt-hours (kWh) or megajoules.

Benchmark

A standard or point of reference against which things may be compared or assessed.

Polluter Pays Principle

An environmental policy principle which states that those who produce pollution should bear the costs of managing it to prevent damage to human health or the environment.