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In: Finance

Derivatives that are traded in an exchange market are standardized according to a rule set by...

Derivatives that are traded in an exchange market are standardized according to a rule set by a central authority.

True/False

Solutions

Expert Solution

True

An exchange traded derivatives are standardise financial contract, it is guaranteed by clearing houses, such as occ, cftc. this guarante reduce the risk of product trading.

where central authority( national bank) regulates the interest rate and currency derivatives market. and other regulators authorities ensure smooth functioning of market.

jeff jeffy answered 2 years ago
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