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Which of the following statements is true regarding the operational rules of different derivative instruments?

Q: Answer-Which of the following statements is true regarding the operational rules of different derivative in...

Derivatives are broadly categorized into contracts like forwards, futures, swaps, and options. From an exchange operations perspective, only Futures and Options are standardized enough to be traded publicly on a stock exchange, whereas Forward contracts and Swap agreements are customized, private Over-the-Counter OTC deals.

A Forwards, Futures, Swaps, and Options are all traded actively on organized stock exchanges.

B A Call Option gives the holder a strict obligation to buy an asset at a pre-determined price.

C Only Futures and Options trade on Stock Exchanges, while Forwards and Swaps are Over-the-Counter (OTC) arrangements.

D A Put Option provides the holder the right and the absolute obligation to sell an underlying asset.

E Options values are entirely independent of physical or financial underlying assets.

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Which of the following statements is true regarding the operational rules of different derivative instruments?

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