Robex Retail Forms a Contract with One of Its Suppliers

question 62

Multiple Choice

Robex Retail forms a contract with one of its suppliers to buy specific amounts of agricultural produce at a later date.This contract is an example of a(n) ________.

• A) financial future
• B) put option
• C) credit derivative
• D) call option
• E) commodities future

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Definitions:

Factorial Design

An experimental strategy in which factors are varied together to examine their interaction effects on a response variable.

Independent Variables

Variables that are manipulated or changed in an experiment to test their effects on dependent variables.

Dependent Variable

The variable in an experiment that is observed and measured for changes, which are thought to be influenced by the manipulation of the independent variable.

Interaction

In research, this refers to the effect that variables have on each other when combined.