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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