Question: Some derivatives have a linear payoff. That is, the value of the derivative increases one for one with increases in the value of the underlying

Some derivatives have a linear payoff. That is, the value of the derivative increases one for one with increases in the value of the underlying asset. Which of the following typically does NOT have a linear payoff.

  • A. swaps
  • B. futures
  • C. options
  • D. forwards

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