Which of the Following Is a Customized Agreement Between Two

question 57

Multiple Choice

Which of the following is a customized agreement between two parties who are known to each other to trade an asset on some future date,at a price that is fixed today?

• A)margin
• B)futures contract
• C)forward contract
• D)interest rate swap
• E)option hedging

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Definitions:

Elevators

Mechanical systems used for vertical transportation of goods or passengers between floors in a building.

Lobby

A group of people seeking to influence politicians or public officials on a particular issue.

Kidnapped

A situation where an individual is forcibly abducted and held against their will, typically demanding ransom for their release.

Addition Rule

A method used in probability to determine the total probability of the occurrence of at least one of several events.