An Option

question 15

Multiple Choice

An option

• A)​is not traded on an organized exchange and is customized to meet the needs of the parties.
• B)​is not traded on an organized exchange and is subject to formal regulations which results in standardized contracts
• C)​is traded on an organized exchange or may be negotiated on a case-by-case basis between counterparties.
• D)​is traded on an organized exchange and is customized to meet the needs of the parties.

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Definitions:

Uniform Probability Distribution

A type of probability distribution where all outcomes are equally likely to occur.

Random Variable

A variable whose possible values are numerical outcomes of a random phenomenon or experiment.

Equal Length

A term often used in data visualization or statistical analysis to describe intervals, bars, or bins that all have the same size or duration.

Normal Probability Distribution

A continuous probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence.