In the Derivatives Markets,the Instrument with the Longest Potential Maturity

question 14

Multiple Choice

In the derivatives markets,the instrument with the longest potential maturity is

• A)options.
• B)futures.
• C)forwards.
• D)swaps.

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Definitions:

First-In, First-Out

An inventory valuation method where the first items acquired are assumed to be sold first, aiming to keep inventory valuations closely aligned with the cost of replacing inventory.

Equivalent Units

A concept in process costing used to express the amount of work done on partially finished goods in terms of fully completed units.

Inventories

Tangible property held for sale in the ordinary course of business, under production for such sale, or to be used in producing goods.

Process Costing System

A method of allocating production costs to products and services based on the processes they go through, common in industries where products are indistinguishable.