Which of the Following Is the Newest Addition to the Derivative

question 3

Multiple Choice

Which of the following is the newest addition to the derivative securities markets?

• A)Options contracts.
• B)Futures contracts.
• C)Swap agreements.
• D)Forward contracts.
• E)Credit derivatives.

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Definitions:

CCA Class

A categorization in Canadian tax law that determines the depreciation rate for tax purposes on capital assets.

Depreciation Tax Shield

A reduction in taxable income for a business, resulting from the depreciation expense claimed on tangible assets.

Tax Rate

The percentage of income or value that is collected by the government as tax.

MACRS Depreciation

A method of depreciation in the U.S. that allows for a faster write-off of assets under the tax code.