For Some Investors, Derivatives Can Be Attractive Financial Assets to Purchase

question 28

Multiple Choice

For some investors, derivatives can be attractive financial assets to purchase because

• A)these assets can be used to offset the possibility of another risk faced by the investor.
• B)these assets allow an investor to eliminate the risk that they face entirely.
• C)they provide high returns with a very small investment.
• D)they are easier to sell than common stock.

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Money that is owed by an individual, as opposed to debts owed by corporations or governments.

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The inability to fulfill obligations as outlined in an agreement without a valid legal justification.