Derivatives Are Securities Such as Options, and Forward and Futures

question 44

True/False

Derivatives are securities such as options, and forward and futures contracts, whose value depends on the performance of an underlying security.

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Definitions:

Borda Count

A voting system used to rank candidates in which voters rank options, and rankings are then converted into scores to determine the winner.

Arrow's Impossibility Theorem

A theorem stating that no rank-order voting system can simultaneously fulfill all of a certain set of reasonable fairness criteria.

Pairwise Voting

A voting system in which choices are compared one pair at a time, with participants selecting their preference in each matchup.

Pairwise Voting

A voting system where participants compare options in pairs, and the option with the most preferences wins.