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Select the Correct Description for Each of the Abbreviations

question 107

Multiple Choice

Select the correct description for each of the abbreviations.
-PID


Definitions:

Swap Contracts

Financial agreements between two parties to exchange cash flows or other financial instruments for a specified period of time.

Put Option

A contract in finance that provides the bearer the privilege, but avoids the necessity, to dispense a specific measure of an underlying asset at a particular price during an outlined period.

Options Contract

A contract giving the buyer the right, but not the obligation, to buy (call option) or sell (put option) an underlying asset at a specified price on or before a certain date.

Forward Contract

A financial derivative that represents a personalized agreement to buy or sell an asset at a specific price on a future date.

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