Derivative Instruments Exist Because

question 22

Multiple Choice

Derivative instruments exist because

• A) They help shift risk from risk-averse investors to risk-takers.
• B) They help in forming prices.
• C) They have lower investment costs.
• D) Choices a and b
• E) All of the above

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Definitions:

Regulatory Controls

Rules and regulations established by government or regulatory bodies to control the way businesses operate, ensuring safety, fairness, and compliance.

General Partner

An owner of a partnership who has unlimited liability and is actively involved in the management of the business.