Chapter13: Capital, Interest, Entrepreneurship, And Corporate Finance
Section: Chapter Questions
Problem 4.8P
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MCQs
- Which of the following can be an underlying for a derivative?
Temperature or climate
Specified
Interest or exchange rate
All of these
- Which of the following can be a notional amount for a derivative?
Share price
Interest rate
Number of currency units
Exchange rate
- Derivatives are obtained
As hedging instrument to hedge some kind of risk
for speculation
either a or b
neither a or b
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