Search l 1:33 PM +1 (754) 422-9701 9/23/18, 12:59 PM All Media School 0/4 pts Qu

Question

Search l 1:33 PM +1 (754) 422-9701 9/23/18, 12:59 PM All Media School 0/4 pts Question 22 Which of the following is true for all derivative securities we have considered in class? are settled daily they are zero sum games heir future value is derived from an underlying asset or variable at future date V a margin deposit is required V they can be used for hedging Choices only L. IIl and V only and v LILIV and V Yea I got an 88 also. The only ones I got wrong were the damn concepts .Idon't know the right answers so it's not cheating

Explanation / Answer

Answer is D

Option 2,3 and 5 are correct

If we are talking about future contracts, then yes they are settled daily and they need margin balance also. So option 1 and 4 go hand in hand.

There is only single option where 1 and 4 are together and you already got it wrong.

So i can assume that it is not future contracts but forwards

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