Q. Which of these statements is most likely true regarding the use of insurance and derivative contracts. A. Insurance and Derivative contracts both allow modification of risk as it is transferred from one party to another but neither has definite life span nor they expire on a specific date. B. Insurance and Derivative contracts both only allow transfer of risk from one party to another, have a definite life span and expire on a specific date. C. Insurance and Derivative contracts both allow transfer of risk from one party to another but neither have a definite life span nor they expire on a specific date.

Question Of The Day : Derivatives (3) - CFA Level 1

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