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

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

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A futures contract is an example of a derivative because it is a financial instrument that derives its value from an underlying asset, such as a commodity, currency, or stock index. The value of the futures contract is based on the expected future price of the underlying asset.

An Example of a Derivative Is A