Examlex
If the index model is valid, _________ would be helpful in determining the covariance between assets K and L.
Options Contract
A contract giving the buyer the right, but not the obligation, to buy (call option) or sell (put option) an underlying asset at a specified price on or before a certain date.
Forward Contract
A financial derivative that represents a personalized agreement to buy or sell an asset at a specific price on a future date.
Futures
Standardized contracts to buy or sell a specific asset at a predetermined price at a specified future date, used for hedging or speculation.
Forwards
A contract between two parties to buy or sell an asset at a specified price on a future date.
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