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Question

Which of the following is not a derivative?

A Forwards Correct Answer Incorrect Answer
B Futures Correct Answer Incorrect Answer
C Debentures Correct Answer Incorrect Answer
D Options Correct Answer Incorrect Answer
E All are derivatives Correct Answer Incorrect Answer

Solution

Derivative is a financial instrument that derives its value from an underlying asset. The types of derivatives include forwards, futures, options and swaps. Debenture is a fixed income security and not a derivative.

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