Stock Index Futures and Options Are Sometimes Referred to as Derivative

question 31

Multiple Choice

Stock index futures and options are sometimes referred to as derivative products because they:

• A)Are often used as part of program trading
• B)Make the market less volatile
• C)Have intrinsic characteristics
• D)Derive their existence from actual market indexes

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Definitions:

Property Ownership

The legal right or title that an individual or entity has over property, including the right to use, sell, lease or transfer it.

Involuntary Bailee

An individual or entity that unintentionally finds themselves in possession of someone else's property and is responsible for its care.

Destroy

To cause something to cease to exist or to put an end to something by damaging it beyond repair or recovery.

Third-party Claimant

An individual or entity that claims rights or seeks remedies under a contract to which they are not a direct party.