Which of the Following Are Limitations to the Range of Derivative

question 14

Multiple Choice

Which of the following are limitations to the range of derivative contracts offered in over-the-counter markets?

• A) pricing of the instrument only
• B) understanding of instrument risk characteristics only
• C) pricing of the instrument and understanding of instrument risk characteristics
• D) all of the above

---

Definitions:

Equivalent Amount

A value or quantity that corresponds or is considered equal in value, function, or significance to another in a different context or format.

Philippine Corn

A major agricultural crop in the Philippines, important both for domestic consumption and as a component of the country's agricultural exports.

Tariffs

Government taxes on products or services entering a country that primarily serve to raise prices on imports.

Chinese Tire Imports

Refers to the importation of tires from China into other countries, which has often been a point of trade and tariff discussions.