There Are Interest Rate Options in Which the Underlying Is

question 23

True/False

There are interest rate options in which the underlying is a debt instrument (called an option on a physical) and a futures contract (called a futures option).

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Definitions:

Risk of Loss

A legal term concerning who bears the responsibility for damage or loss of goods under a contract at any given point in a transaction.

Transit

The act or process of moving people or goods from one place to another.

Common Carrier

An entity that offers transportation services to the public under the license or authority provided by a regulatory body, obligated to serve without discrimination.

Shipping Arrangements

The planning and execution involved in the transportation of goods from one location to another, including modes of transport, routes, and logistics.