Question of the day : Derivatives

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.