The Buyer of a Derivative Is _______ Comfortable Assuming Risk

question 58

Multiple Choice

The buyer of a derivative is _______ comfortable assuming risk than the seller.

• A)more
• B)less
• C)just as
• D)Risk assumption has nothing to do with derivatives.

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Definitions:

Right Of First Refusal

A contractual right that gives its holder the option to enter a business transaction with the owner of something, before the owner is entitled to enter into that transaction with a third party.

Anticipatory Repudiation

A declaration by one party to a contract of their intention not to fulfill their future obligations as agreed.

Dissolution

The first stage in the termination of a partnership.

Liquidation

The process in which a debtor turns over all assets to a trustee.