Which of the Following Are Advantages of Derivatives

question 24

Multiple Choice

Which of the following are advantages of derivatives?

• A)lower transaction costs than securities and commodities
• B)reveal information about expected prices and volatility
• C)help control risk
• D)make spot prices stay closer to their true values
• E)all of the above

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Definitions:

Iliad

An ancient Greek epic poem attributed to Homer, chronicling the siege of Troy and highlighting themes of heroism, wrath, and the follies of gods and men.

Repoussé

Repoussé is a metalworking technique in which a malleable metal (such as gold, silver, copper) is ornamented or shaped by hammering from the reverse side to create a design in low relief.

Lost Wax

A method of metal casting in which a molten metal is poured into a mold that has been created by means of a wax model, which melts and runs out, leaving a detailed impression behind.

Carving

A sculptural technique in which the artist cuts away material (for example, from a stone block) in order to create a statue or a relief.