Which of the Following Statements Is True Regarding Forward Contracts,futures

question 12

Multiple Choice

Which of the following statements is true regarding forward contracts,futures contracts,options and swaps?

• A)A forward contract can be purchased on the open market and is recorded at its historical cost,then adjusted for changes in the market.
• B)A futures contract is negotiated between two parties who are betting in the opposite direction on the movement of the underlying price.
• C)An option is a contract requiring the holder to either "put" or "call" an underlying asset at a specified point in time.
• D)A swap is a contract between two parties to exchange an ongoing stream of cash flows.

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Definitions:

Turnover

The rate at which employees leave a workforce and are replaced by new personnel.

Variable Pay

A compensation strategy where an employee's earnings fluctuate based on performance or results achieved.

Performance Measure

Metrics or indicators used to assess the efficiency, effectiveness, and productivity of an employee, team, or organization.

Motivator

A factor that encourages individuals to act or behave in a certain way in order to achieve desired outcomes.