Contingent contracts can create value in the presence of what feature:
A)uncertain future outcomes.
B)a negative bargaining zone.
C)differences in the parties' time preferences.
D)differences in the parties' risk preferences.

Question

Quizplus · Accepted Answer

Contingent contracts are designed to address uncertain future outcomes by specifying different terms based on different future events, thus creating value by managing uncertainty.

Contingent Contracts Can Create Value in the Presence of What