Agreements That Give the Right (But Not the Obligation) to Buy

question 61

Multiple Choice

Agreements that give the right (but not the obligation) to buy or sell an underlying asset at a specified price at a specified time in the future are known as:

• A)forwards.
• B)futures.
• C)coupons.
• D)swaps.
• E)options.

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Definitions:

Integration

The process of combining or coordinating separate elements or units into a unified whole.

Coordination

The process of organizing activities and resources efficiently to achieve specific goals and objectives.

Mutual Adjustment

A coordination mechanism where parties adapt to each other's actions and decisions in a dynamic environment.

Feedback

Information about the effectiveness of one’s work performance.