Futures and Currency Swaps Eliminate Unfavorable Price Movements, Whereas Options

question 11

True/False

Futures and currency swaps eliminate unfavorable price movements, whereas options can be used to eliminate the effect of both favorable and unfavorable price movements.

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Definitions:

Genetically Influenced

Traits or characteristics that are shaped in part by an organism's genetic makeup.

Extraversion

Extraversion is a personality trait characterized by outward turning of emotional, mental, and social energy, favoring an active engagement with the external world.

Emotionality

The intensity and expression of complex emotional states, often reflecting an individual's capacity to respond emotionally to experiences.

Empirically Derived

Developed or created based on systematic observation or experimentation rather than theory alone.