Financial Instruments

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Multiple Choice

What is a financial instrument?

  1. A contract that gives the buyer the right, but not the obligation, to buy or sell an asset at a specified price in the future.
  2. A contract that gives the seller the right, but not the obligation, to buy or sell an asset at a specified price in the future.
  3. A contract that obligates the buyer to buy or sell an asset at a specified price in the future.
  4. A contract that obligates the seller to buy or sell an asset at a specified price in the future.
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