Futures and Currency Swaps Eliminate Unfavorable Price Movements, Whereas Options

question 11

True/False

Futures and currency swaps eliminate unfavorable price movements, whereas options can be used to eliminate the effect of both favorable and unfavorable price movements.

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Definitions:

Descartes

Referring to René Descartes, a French philosopher, mathematician, and scientist who is considered one of the founders of modern philosophy, best known for the statement "I think, therefore I am."

Hobbes

A philosopher known for his social contract theory, suggesting that humans agree to surrender some freedoms for societal order.

Metaphysical Stage

A concept in sociology and philosophy, referring to a stage of societal development where explanations for reality are based on abstract, philosophical reasoning rather than religious or supernatural beliefs.

Theological Stage

AUGUSTE Comte's term for the earliest stage of human society, in which explanation of the world relies on religious and supernatural beliefs.