Which of the following is not a derivative?
A) Swaps
B) Bonds
C) Futures
D) Options
E) Forwards

Question

Quizplus · Accepted Answer

Bonds are not derivatives. They are a type of investment that represents a loan made by an investor to a borrower, typically corporate or governmental. Derivatives, on the other hand, are financial securities with a value that is reliant upon or derived from, an underlying asset or group of assets—a benchmark. Swaps, futures, options, and forwards are all types of financial derivatives, as their value is based on the performance of underlying financial assets, indexes, or other variables.

Which of the Following Is Not a Derivative