One Key Difference Between Swaps and Option Contracts Is

question 5

Multiple Choice

One key difference between swaps and option contracts is:

• A) swaps are derivative agreements and options are not.
• B) swaps do not involve any risk and options do.
• C) options transfer risk, swaps create risk.
• D) options trade on organized exchanges and swaps do not.

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Definitions:

Systematic Desensitization

A technique used in behavior therapy to treat phobias and other behavior problems involving anxiety, by gradually exposing the patient to the anxiety-producing stimulus in a controlled environment.

Closed Places

Spaces or environments that are physically restricted, enclosed, or not open to the surrounding area or the public.

Guns

Firearms designed to discharge projectiles at high speed, commonly used for defense, hunting, and sports shooting, as well as, unfortunately, in violence.

Seldom Develop

Rarely or infrequently come into existence or begin to exhibit a particular desirable quality.