These Derivative Tools Are Traded in the Over-The-Counter Market, and Contract

question 20

Multiple Choice

These derivative tools are traded in the over-the-counter market, and contract characteristics can be tailored to meet specific customer needs.Farmers and grain elevator operators also use them to lock in a price for their corn or soybeans or wheat.Identify them.

• A)Forwards
• B)Futures
• C)Swaps
• D)Options
• E)Coupons

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Definitions:

Ultimate Attribution Error

A cognitive bias where positive behaviors from one's in-group are attributed to their character, while negative behaviors are dismissed as situational, and the opposite is applied to out-groups.

Fundamental Attribution Error

is the cognitive bias that leads individuals to attribute others' actions to their character or personality while underestimating situational influences.

Actor-Observer Effect

A psychological tendency to attribute one’s own actions to external factors while attributing others’ actions to their internal characteristics.

Self-Serving Bias

The common human tendency to attribute positive events to their own character but attribute negative events to external factors.