19 Which of the following is not a distinguishing characteristic of a derivative instrument? a. Derivative instrume...
19 Which of the following is not a distinguishing characteristic of a derivative instrument?
| a. |
Derivative instruments have one or more underlyings and notional amounts. |
|
| b. |
Derivative instruments have a low initial net investment. |
|
| c. |
Derivative instruments have terms that require or permit net settlement. |
|
| d. |
Derivative instruments are highly effective throughout their term. |
Homework Answers
Ans d. Derivative instruments are highly effective throughout their term.
Following are distinguishing characteristic of a derivative instrument : Derivative instruments have one or more underlyings and notional amounts, Derivative instruments have a low initial net investment, Derivative instruments have terms that require or permit net settlement.
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