One Benefit of a Swap Compared to Futures and Options

question 76

Multiple Choice

One benefit of a swap compared to futures and options is that they

• A)promote liquidity.
• B)reduce the risk for both the buyer and seller.
• C)can be better tailored to meet the needs of market participants.
• D)can involve financial instruments and not just commodities.

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Definitions:

Decibels

A unit of measurement for sound intensity or loudness, often used to compare levels of noise or sound pressure.

Sound Amplitude

The height of a sound wave, which determines its loudness or volume.

Perception Of Sound

The process by which sounds are interpreted and understood by the brain, involving the conversion of sound waves into neural signals.

Hz

The unit of frequency in the International System of Units (SI), representing one cycle per second.