Firms Engage in Transactions Involving Derivatives

question 93

Multiple Choice

Firms engage in transactions involving derivatives.For the most part, the complex parts of these transactions occur _____, but those transactions do _____ until, possibly, their settlement.

• A)after the firm has acquired the derivative; not affect cash flows
• B)before the firm has acquired the derivative; not affect cash flows
• C)when the firm has acquired the derivative; not affect cash flows
• D)after the firm has acquired the derivative; not affect net income
• E)before the firm has acquired the derivative; not affect net income

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Definitions:

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Rapid Elasticity

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Cloud-Based Servers

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