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:

Fear

A negative feeling resulting from the assumption that a person or object poses a risk, potential harm, or is menacing.

Joy

A feeling of great pleasure and happiness.

Frontal Lobe

The part of the brain located at the front of each cerebral hemisphere, responsible for executive functions, decision making, movement, and speech.

Positive

Characterized by or displaying an optimistic, constructive, or affirmative nature or outcome.