Which of the Following Financial Instruments Can Underlie an Option

question 58

Multiple Choice

Which of the following financial instruments can underlie an option contract?

• A) interest bearing instruments
• B) financial assets
• C) shares in other entities
• D) all of the given answers

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Definitions:

Centrally Planned

An economic system where major decisions regarding production, distribution, and investment are made by the government or a central authority.

Socialist Economy

An economic system in which the means of production, distribution, and exchange are owned or regulated by the community as a whole, with an aim toward equitable distribution of wealth and resources.

Norway

A Nordic country in Northern Europe known for its advanced economy, high quality of life, and robust welfare system.

John Kenneth Galbraith

A Canadian-American economist, public official, and diplomat known for his works on consumer behavior, organizational theory, and public policy.