Derivatives may be described as:
A)Promissory notes
B)Common shares
C)Executory contracts
D)Executed contracts

Question

Quizplus · Accepted Answer

Derivatives are financial contracts whose value is dependent on an underlying asset, index, or security. They are considered executory contracts because both parties have yet to fulfill their obligations. Unlike executed contracts, where the terms have been fully met, executory contracts, like derivatives, involve ongoing obligations.

Derivatives May Be Described As