Which of the Following Are Contracts That Give the Holder

question 1

Multiple Choice

Which of the following are contracts that give the holder the right, but not the obligation, to buy or sell an underlying asset at a pre-specified price for a specified time period?

• A)options
• B)futures
• C)forwards
• D)swaps

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Definitions:

SUM

The result of adding two or more numbers together to get a total amount.

Information Dependence

The extent to which individuals or organizations rely on others for obtaining information necessary to make decisions or perform tasks.

Effect Dependence

The extent to which outcomes in interpersonal or organizational settings depend on the actions of others.

Psychological Contract

An unwritten agreement that reflects mutual expectations and obligations between an employee and employer beyond the formal contract of employment.