a-4, b-3, c-2, d-1
a-1, b-2, c-3, d-4
a-2, b-1, c-3, d-4
a-4, b-3, c-1, d-2
Answer is Right!
Answer is Wrong!
The correct answer is: A. a-4, b-3, c-2, d-1
Here is a brief explanation of each option:
- Future is a contract covering the purchase and sale of physical commodities or financial instruments for future delivery on a future exchange floor.
- Swap is a contractual agreement for exchanging a steam of payments with opposite and matching needs, to reap the benefit arising due to market discrepancies.
- Hedging is a technique used to reduce the risk of loss from adverse price movements in an asset.
- Forward is a contract in which a seller agrees to deliver an asset to a buyer at a predetermined price at some future date as privately negotiated.
In the given question, option A is the only option that matches the definitions of the terms correctly.