The Primary Use of Derivative Contracts Is

question 74

Multiple Choice

The primary use of derivative contracts is:

• A) for IRA and other pension plans since they only have value well into the future.
• B) to shift risk among investors.
• C) for investors seeking a greater return by taking greater risk.
• D) to add to the profits an investor obtains through information asymmetry.

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Definitions:

Stakeholders

People and groups with an interest or “stake” in the performance of the organization.

Acts Of Terrorism

Deliberate acts of violence or threats intended to create fear and advance a political, religious, or ideological cause.

Workplace Violence

Involves any act or threat of physical violence, harassment, intimidation, or other threatening disruptive behavior that occurs at the work site.

Nonprogrammed Decisions

Decision-making that occurs in response to unusual, unpredictable, and unique problems or opportunities where there are no previously established decision rules.