An instrument whose price depends on the price of an underlying product is known as a:
A) market index.
B) two- way price.
C) derivative.
D) contingent cash flow.

Name: An instrument whose price depends on the price of an underlying product is known as a: A) market index. B) two- way price. C) derivative. D) contingent cash flow.
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Question

Quizplus · Accepted Answer

A derivative is a financial instrument whose value is dependent on the price of an underlying asset, such as stocks, bonds, commodities, or market indices.

An Instrument Whose Price Depends on the Price of an Underlying