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Question 4 (1 point) Which of the following statements about derivatives is false? A forward contract commits both parties to execute a transaction at the

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Question 4 (1 point) Which of the following statements about derivatives is false? A forward contract commits both parties to execute a transaction at the forward date. Banks almost always use derivatives for hedging rather than speculation. Options give the buyer the right but not the obligation to buy or sell the underlying asset at a future date. They will be recorded as liabilities if it will result in a profit to close them out on the balance sheet date

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