Which of the Following Statements Is True

question 13

Multiple Choice

Which of the following statements is true?

• A)The advantage of using forwards for creating a synthetic fixed rate position is that there are no cash flows until the contract matures.
• B)The advantage of using futures for creating a synthetic fixed rate position is that futures contracts are standardised.
• C)The advantage of using forwards for creating a synthetic fixed rate position is that futures contracts are standardised.
• D)The advantage of using futures for creating a synthetic fixed rate position is that there are no cash flows until the contract matures.

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Definitions:

Circadian Rhythm

The physical, mental, and behavioral changes that follow a 24-hour cycle, primarily responding to light and darkness in an organism's environment.

Natural Substance

refers to any product or material found in nature, not artificially produced, often used in context with foods, medicines, and other products.

Hypnagogic Imagery

Vivid visual phenomena that occur during the onset of sleep.

Stage 1

The initial phase in a series of stages, often indicating the starting point of development, processes, or classifications.