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:

Differentiated Branding

A marketing strategy that involves creating a distinct image or identity for a product or service to set it apart from competitors.

Conditioned Stimulus

In classical conditioning, a previously neutral stimulus that, after being associated with an unconditioned stimulus, elicits a conditioned response.

Masked Branding

is a marketing strategy where a product's brand is not directly associated with the product itself, making the brand element less obvious to consumers.

Brand Loyalty

A consumer's consistent preference for one brand over all others, often accompanied by a sense of attachment or trust towards the brand's products or services.