Forwards, swaps, futures, and options are examples of:

a. spot market transactions.
b. transaction costs.
c. market frictions.
d. derivatives.

Ans: d. derivatives.

Economics

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Today's Federal Reserve bank notes promise to pay the bearer

A) nothing. B) a fixed quantity of gold. C) a variable quantity of gold. D) a specific interest rate. E) a variable interest rate.

Economics

A health club sells 50 memberships when the monthly price is $60 and 70 memberships when the monthly price is $40 . The price elasticity of demand for memberships at this health club is (using the average values method):

a. 0.25. b. 0.6. c. 1.0. d. 1.1. e. 0.83

Economics