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

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Definitions:

War for Independence

The conflict between the Thirteen American Colonies and Great Britain from 1775 to 1783, resulting in the establishment of the United States of America.

American Southwest

A region in the United States defined by its arid and semi-arid climate, encompassing states such as Arizona, New Mexico, parts of California, Nevada, Utah, and Colorado.

Protestant

A member of the branch of Christianity that separated from the Roman Catholic Church during the Reformation.

Battle of Yorktown

The decisive victory by American and French forces over British troops in 1781, effectively ending the American Revolutionary War.