In the derivatives markets, the instrument with the longest potential maturity is
A)options.
B)futures.
C)forwards.
D)swaps.
E)currencies.

Question

Quizplus · Accepted Answer

Swaps have the longest potential maturity as they can be customized to any length of time agreed upon by the parties involved. Options have a fixed expiration date, while futures and forwards typically have standardized expiration dates that do not extend beyond a few years. Currencies are not a specific type of derivative instrument.

In the Derivatives Markets, the Instrument with the Longest Potential