Which of the Following Statements Is True

question 13

Multiple Choice

Which of the following statements is true?

• A)The advantage of using forwards for creating a synthetic fixed rate position is that there are no cash flows until the contract matures.
• B)The advantage of using futures for creating a synthetic fixed rate position is that futures contracts are standardised.
• C)The advantage of using forwards for creating a synthetic fixed rate position is that futures contracts are standardised.
• D)The advantage of using futures for creating a synthetic fixed rate position is that there are no cash flows until the contract matures.

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Definitions:

Layoff

The temporary or permanent termination of employees due to economic downturns, restructuring, or other organizational changes.

Restructuring

The act of reorganizing the legal, ownership, operational, or other structures of a company for the purpose of making it more profitable or better organized for its present needs.

Organizational Change

The process through which companies undergo transformations in their structures, strategies, operational methods, technologies, or cultures to adapt to internal and external pressures.

Systematic Change

A change that impacts an entire system, often involving significant restructuring or transformation of processes, policies, or practices.