Financial Instruments Include Accounts Receivable,accounts Payable,futures Contracts,equity Securities and Options

question 25

Multiple Choice

Financial instruments include accounts receivable,accounts payable,futures contracts,equity securities and options.Which of the following statements is correct?

• A) Accounts receivable, accounts payable and options are primary financial instruments
• B) Equity securities and futures contracts are primary financial instruments
• C) Accounts receivable and accounts payable are derivative (secondary) financial instruments
• D) None of the above is correct

Understand the factors that influence options pricing and valuation.

Identify and calculate the intrinsic and time values of options.

Explain the impact of dividends on options pricing.

Understand the concepts of dynamic hedging and its challenges in volatile markets.

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Definitions:

Blood Pressure

The force of circulating blood on the walls of blood vessels, typically measured to assess health conditions.

Reduced Cholesterol

A decrease in the levels of cholesterol in the bloodstream, which can lower the risk of heart disease.

Blood-Clotting

A physiological process where blood changes from a liquid to a gel, forming a blood clot to stop bleeding.

Self-Control

The potential to discipline one's emotional reactions, contemplations, and movements in the realm of inducements and hasty impulses.