A derivative security is neither debt nor equity but instead derives its value from an underlying asset.

Name: A derivative security is neither debt nor equity but instead derives its value from an underlying asset.
Brand: Quizplus
Rating: 4.8 (39 reviews)

Question

Quizplus · Accepted Answer

A derivative security is a contract whose value is based on the performance of an underlying asset, such as a stock, commodity, or currency. It is not itself a debt or equity instrument. Examples of derivative securities include options, futures contracts, and swaps.

A Derivative Security Is Neither Debt nor Equity but Instead