Use the Following Two Columns of Items to Answer the Matching

question 43

Short Answer

Use the following two columns of items to answer the matching questions below:
-settlement options
A)a single payment to the beneficiary
B)alternative ways a beneficiary can receive benefits
C)Lump-sum, installment payments, and interest payments.

• A)a single payment to the beneficiary
• B)alternative ways a beneficiary can receive benefits
• C)Lump-sum, installment payments, and interest payments.

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Definitions:

Forward Contract

A contractual arrangement to purchase or sell a given commodity or asset at a set price on a designated date in the future.

Forward Price

The predetermined price agreed upon in a forward contract, at which the asset will be bought or sold at a future date.

European Call

A call option that can only be exercised on the expiration date, not before.

Strike Price

The Strike Price is the fixed price at which the owner of an option can buy (in the case of a call option) or sell (in the case of a put option) the underlying security or commodity.