The underlying asset of a derivative contract can be -
AEquity shares Correct AnswerIncorrect Answer
BInterest rate Correct AnswerIncorrect Answer
CCurrency Correct AnswerIncorrect Answer
DCommodities Correct AnswerIncorrect Answer
EAll of the above Correct AnswerIncorrect Answer
Solution
The underlying security is often referred to simply as "the underlying." An underlying security can be any asset, index, currency, commodity, financial instrument or even another derivative.