An example of a derivative is:
A)a futures contract.
B)a stock.
C)a bond.
D)a fixed-income security.

Question

Quizplus · Accepted Answer

A futures contract is an example of a derivative because it is a financial contract that derives its value from an underlying asset, such as a commodity or financial instrument. The value of the futures contract fluctuates based on changes in the price of the underlying asset, and traders can use futures contracts to speculate on or hedge against price movements in the underlying asset.

An Example of a Derivative Is