One Key Difference Between Swaps and Option Contracts Is

question 99

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:

Liability for Negligence

Legal responsibility for harm caused by failing to act as a reasonable person would, resulting in damage or injury to another.

Third-Party Users

Individuals or entities that are not directly involved in a contract or transaction but who may be affected by it or have rights or obligations arising from it.

Accountant-Client Privilege

The right of an accountant to not reveal any information given in confidence by a client. The privilege is not granted by every state or by the federal government.

Demanding Payment

The act of formally or informally requesting the settlement of a sum of money owed from a debtor.