Question

How are derivatives categorised based on their pay-off profile?

a.

Lock and Option products

b.

Exchange Traded and Privately traded

c.

Forward and Swap products

d.

Hedge and Speculation products

Posted under IC 89 Management Accounting

Answer: (a).Lock and Option products Explanation:Derivatives can be broadly categorised as "Lock" or "Option" products based on their pay-off profile.

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Q. How are derivatives categorised based on their pay-off profile?
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