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    Question

    For derivatives what can be the underlying asset?

    A Stock Correct Answer Incorrect Answer
    B Commodity Correct Answer Incorrect Answer
    C Currency Correct Answer Incorrect Answer
    D All of the above Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Derivative is a contract between two parties which derives its value/price from an underlying asset. An underlying asset can be a stock, basket of assets, commodity, index, currency or even another derivative.

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