Statement 1. A private market is one like the Philippine Stock Exchange, where transactions are handled by members of the organization, while public markets are those in the black market, where anyone can make transactions. Statement 2. A common stock is not a derivative, but a futures contract to buy the stock is a derivative because the value of the futures contract is derived from the value of the stock. a. Statement 1 is true b. Statement 2 is true c. Both Statements are true.
Statement 1. A private market is one like the Philippine Stock Exchange, where transactions are handled by members of the organization, while public markets are those in the black market, where anyone can make transactions. Statement 2. A common stock is not a derivative, but a futures contract to buy the stock is a derivative because the value of the futures contract is derived from the value of the stock. a. Statement 1 is true b. Statement 2 is true c. Both Statements are true.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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52. Statement 1. A private market is one like the Philippine Stock Exchange, where transactions are handled by members of the organization, while public markets are those in the black market, where anyone can make transactions.
Statement 2. A common stock is not a derivative, but a futures contract to buy the stock is a derivative because the value of the futures contract is derived from the value of the stock.
a. Statement 1 is true
b. Statement 2 is true
c. Both Statements are true.
d. Both Statements are false.
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