Standardization of Derivative Contracts

question 33

Multiple Choice

Standardization of derivative contracts

• A)increases their liquidity.
• B)is the rule with respect to contracts whose underlying asset is a financial security, but not for contracts whose underlying asset is a commodity.
• C)is the rule with respect to contracts whose underlying asset is a commodity, but not for contracts whose underlying asset is a financial asset.
• D)has been proposed many times by financial analysts, but has not yet been carried out by the SEC.

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Definitions:

Boron Isotopes

Variants of the element boron, differing in the number of neutrons in the nucleus and having distinct nuclear properties.

Trimethylborate

A chemical compound with the formula B(OCH3)3, used as a reagent in organic synthesis and as a flame retardant.

M+2 Peak

A peak in mass spectrometry representing molecules with two more units of mass than the base molecular ion, often due to the presence of isotopes such as sulfur-34 or chlorine-37.

MS Peak

A peak in mass spectrometry that represents ions of specific mass-to-charge ratios, providing information about the molecular weight or structure of the analyte.