Which of the Following Statements Is Most Valid

question 1

Multiple Choice

Which of the following statements is most valid?

• A)Asian options are useful for hedging risk to markets in Asia.
• B)Asian options are usually more expensive than vanilla options because they are exotic.
• C)Asian options are useful for hedging exposure to the average price of a security or commodity.
• D)Asian options are more sensitive to volatility than vanilla options.

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Definitions:

Nitrous Oxide

A colorless gas with a sweet odor, used as an anesthetic and analgesic, and also a significant greenhouse gas contributing to global warming.

Troposphere

The lowest layer of Earth's atmosphere, where all weather takes place, extending up to about 10 kilometers (6 miles) from the surface.

Stratosphere

The layer of the Earth's atmosphere above the troposphere, ranging approximately from 10 to 50 kilometers in altitude, known for its ozone layer that absorbs most of the sun's ultraviolet radiation.

Earth Layers

The division of Earth's structure into distinct layers, including the crust, mantle, outer core, and inner core, each with its unique composition and physical properties.