ACI
3I0-013 · Question #303
Which of the following is characteristic of derivative instruments?
The correct answer is C. The final settlement of a derivates trade can only be made by physical delivery. See the full explanation below for the reasoning.
Question
Which of the following is characteristic of derivative instruments?
Options
- ATrades are executed in nominal amounts
- BDerivates are bought and sold only over the counter (OTC)
- CThe final settlement of a derivates trade can only be made by physical delivery
- DThe accounting for derivative instruments is off balance sheet
How the community answered
(25 responses)- A12% (3)
- B4% (1)
- C80% (20)
- D4% (1)
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