Which of the following statements are true about derivatives Derivatives are securities whose payoff is linked to another security the payoff is never assured with certainty A swap is a derivative instrument between counterparties that only exchanges a series of cash flows for specific time period at specific intervals notionals are never swapped Notionals are standardized and tradable derivatives All derivatives have potential outcomes which may be unfavorable to one of the parties One of the counterparties will always have off balance sheet liability risk Only I is true Only II, III, IV and V are true II and V are false all others are true Only II and III are false, all the others are true None

Question

Which of the following statements are true about derivatives  Derivatives are securities whose payoff is linked to another security  the payoff is never assured with certainty  A swap is a derivative instrument between counterparties that only exchanges a series of cash flows for specific time period at specific intervals  notionals are never swapped  Notionals are standardized and tradable derivatives  All derivatives have potential outcomes which may be unfavorable to one of the parties  One of the counterparties will always have off balance sheet liability risk  Only I  is true  Only II, III, IV and V are true  II and V are false  all others are true Only II and III are false, all the others are true None

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Which of the following statements are true about derivatives? Derivatives are securities whose payoff is linked to another security; the payoff is never assured with

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