Weather Derivative Payoffs Can Be Based on Each of the Following

question 48

Multiple Choice

Weather derivative payoffs can be based on each of the following variables except

• A)temperature above a given level
• B)inches of snowfall
• C)total value of insurance claims
• D)temperature below a given level
• E)sunshine

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Definitions:

Disjunctive Syllogism (DS)

A form of logical argument where, if one has a disjunction (A or B) and knows that A is not true, one can conclude B must be true.

Implication (Imp)

A logical relationship where if the first statement (antecedent) is true, then the second statement (consequent) must also be true.

Quantifier Negation

In logic, the process of negating a quantified statement, which can change the original scope and meaning of the statement.

Universal Generalization

A logical operation that asserts that a property or relation holds for all members of a certain category.