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Questions and Answers
Which of the following is NOT an underlying asset for derivatives contracts?
Which of the following is NOT an underlying asset for derivatives contracts?
- Commodities
- Market indices
- Derivatives (correct)
- Interest rates
Which of the following is a common type of derivative?
Which of the following is a common type of derivative?
- Stocks
- Currencies
- Bonds
- Commodities (correct)
What is the primary goal of hedgers in the derivatives market?
What is the primary goal of hedgers in the derivatives market?
- To reduce potential risks (correct)
- To speculate on price movements
- To profit from arbitrage opportunities
- To diversify their investment portfolio
Which of the following is NOT a type of derivative?
Which of the following is NOT a type of derivative?
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What are underlying assets in the context of derivatives?
What are underlying assets in the context of derivatives?
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