Question 1
How are derivatives used by investors?
◦ To hedge against the risk of sudden loss
◦ To limit long-term growth in the market
◦ To move stock to money markets
◦ To create a bull market
◦ To avoid using credit cards to cover short-term debt
Question 2
If an organization is facing a short-term credit crunch and wants to liquidize the treasury bills and commercial papers they have, where can the organization sell them?
◦ Options market
◦ Bond market
◦ Money market
◦ Stock market
◦ Futures market