One of the Main Reasons for the Name "Derivatives" Is

question 20

Multiple Choice

One of the main reasons for the name "derivatives" is that

• A) the value of the underlying instrument derives its value from the derivative instrument.
• B) the instruments derive their value from the value of other instruments.
• C) calculus is required to convert their market price to a dollar price.
• D) none of the above.

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Definitions:

Human Capital

Human capital is the collective skills, knowledge, or other intangible assets of individuals that can be used to create economic value for the individuals, their employers, or the community.

Marginal Product

The additional output that is produced by adding one more unit of a specific input, keeping all other inputs constant.

Efficiency Wage

A theory proposing that higher wages lead to increased productivity and efficiency among workers by attracting better applicants, reducing turnover, and increasing worker effort.

Wage Disparity

The difference in wages earned by different groups of people, often segmented by gender, race, or education level.