Swaps Differ from Futures and Options in All of the Following

question 21

Multiple Choice

Swaps differ from futures and options in all of the following ways EXCEPT:

• A)intended to reduce the risk faced by participants.
• B)more flexibility.
• C)more privacy.
• D)less regulation.

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Definitions:

Outstanding Shares

The total shares of a corporation that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Authorized Shares

The maximum number of shares of stock a corporation can issue as specified in its charter.

Investors

Individuals or entities that allocate capital to different types of investments with the expectation of generating a future return.

Residual Claim

A claim on a company's assets and income that is only payable after all other debts and liabilities have been settled.