The Primary Use of Derivative Contracts Is

question 74

Multiple Choice

The primary use of derivative contracts is:

• A) for IRA and other pension plans since they only have value well into the future.
• B) to shift risk among investors.
• C) for investors seeking a greater return by taking greater risk.
• D) to add to the profits an investor obtains through information asymmetry.

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Definitions:

Carriers

Individuals who are heterozygous for a trait with a dominant and recessive allele and thus express only the characteristics associated with the dominant allele but may pass the recessive allele, including one for a recessive disorder, on to their offspring.

Different Alleles

Variants of the same gene that exist at the same locus on a chromosome but encode for different traits.

Intermediate

A level of proficiency that falls between beginner and advanced, often indicating a moderate grasp of skills or knowledge.

Homozygous

Having inherited two genes of the same allelic form for a trait.