Question
All of the following statements are true except: I. The price of a derivative contract is derived from the price of the commodity or financial
All of the following statements are true except:
I. The price of a derivative contract is derived from the price of the commodity or financial instrument;
II. The particular risk exposure is said to be hedged when the derivative contract implies locking the unknown price of an underlying asset in a particular day in future;
III. Derivatives can be used either for hedging or speculative operations in financial markets;
IV. Risk management straggles based on derivatives are easily implemented, especially within large organisations, because they have a direct access to financial markets.
Select one:
a.
II
b.
II and III
c.
II and IV
d.
III and IV
e.
IV
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