The following statements relate to derivatives. Which of the following is FALSE? a. Swaps may have cashflows as its underlying assets. b. Options allow the buying party to pay a price for a chance to buy or sell the underlying asset . c. Futures are forward commitments. d. Futures and forwards may be contingent claims wherein the contract can be cancelled upon the agreement of both parties.

The following statements relate to derivatives. Which of the following is FALSE? a. Swaps may have cashflows as its underlying assets. b. Options allow the buying party to pay a price for a chance to buy or sell the underlying asset . c. Futures are forward commitments. d. Futures and forwards may be contingent claims wherein the contract can be cancelled upon the agreement of both parties.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter24: Enterprise Risk Management

Section: Chapter Questions

Problem 6Q

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