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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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