A characteristic of forward commitments is that they:
A: provide linear payoffs.
B: do not depend on the outcome or payoff of an underlying asset.
C: provide one party the right to engage in future transactions on terms agreed on in advance.
A: provide linear payoffs.
B: do not depend on the outcome or payoff of an underlying asset.
C: provide one party the right to engage in future transactions on terms agreed on in advance.
举一反三
- An analyst does research about difference between forward market and future market. Compared with contracts in the forward market, contracts in the futures market are least likely to be appropriately described as transactions that are:() A: public. B: customized according to the counterparts' requests. C: based on an agreement to buy or sell an underlying asset at a future date at a price agreed on today.
- A forward contract that must be settled by a sale of an asset by one party to the other party is termed a : A: physicals-only contract. B: deliverable forward contract. C: take-and-pay contract.
- If one party violates stipulations in packing terms, the other party shall have the right to reject the goods and claim for the losses.
- An American put option gives its holder the<br/>right to _________. A: buy the underlying asset at the exercise price on or before the expiration date B: buy the underlying asset at the exercise price only at the expiration date C: sell the underlying asset at the exercise price on or before the expiration date D: sell<br/>the underlying asset at the exercise price only at the expiration<br/>date
- Price channels: I. Provide potential entry levels. II. Provide potential profit taking levels. III. Provide potential future price targets. IV. Provide potential stoploss levels.