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Question 9 Not yet answered Marked out of 2.00 Flag question Identify one false statement from below: O a. In a swap contract, two parties
Question 9 Not yet answered Marked out of 2.00 Flag question Identify one false statement from below: O a. In a swap contract, two parties agree to exchange payment obligations on two underlying financial liabilities that are equal in principal amount but differ in payment patterns. Derivatives can increase liquidity in any given market by increasing turnover and trading depth. O b. . By taking a position in a derivative security that offsets the firm's risk profile, the firm can limit how much its value is affected by changes in the risk factors. O d. A forward contract involves two parties agreeing today on a price, called the spot price at which the purchaser will buy a specified amount of an asset from the seller at a fixed date sometime in the future
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