Derivative Instruments Exist Because

question 22

Multiple Choice

Derivative instruments exist because

• A) They help shift risk from risk-averse investors to risk-takers.
• B) They help in forming prices.
• C) They have lower investment costs.
• D) Choices a and b
• E) All of the above

---

Definitions:

Appeal

The process of asking a higher court to review and change the decision of a lower court.

Tort of Deceit

A legal claim arising when one party intentionally misrepresents a fact, causing another party to suffer damage as a result of relying on that misrepresentation.

Economic Injury

Financial damage suffered by an individual or entity, often due to the actions or negligence of another party.

BFOQ

Stands for "Bona Fide Occupational Qualification," a legal term that allows for the consideration of characteristics normally deemed discriminatory if they are essential to a job's operation.