Which of the following is not an example of a derivative?
A) Interest rate swap.
B) Cash.
C) Stock option.
D) Forward contract.

Question

Quizplus · Accepted Answer

Cash is not a derivative. Derivatives are financial products that derive their value from an underlying asset or benchmark. Cash, on the other hand, is a primary asset and not derived from anything else. A, C, and D are examples of derivatives as they derive their value from an underlying asset or benchmark.

Which of the Following Is Not an Example of a Derivative