An example of a derivative security is

A. a call option on Intel stock.

B. a commodity futures contract. a common share of Microsoft.

C. a common share of Microsoft and a call option on Intel stock.

D. a call option on Intel stock and a commodity futures contract.

Question

Business

Skyler

1 June, 22:01

An example of a derivative security is

A. a call option on Intel stock.

B. a commodity futures contract. a common share of Microsoft.

C. a common share of Microsoft and a call option on Intel stock.

D. a call option on Intel stock and a commodity futures contract.

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Answers (1)

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Thalia Duarte · Answer 1

Answer: The corrects answers are "a commodity futures contract", and "a call option on Intel stock".

Explanation: An example of a derivative security is a commodity futures contract, and a call option on Intel stock.

There are several types of derivative securities. A derivative security is a financial product whose value depends on the value of another asset. They can be classified in several ways, depending on their complexity, their characteristics or the agents involved in them.

An example of a derivative security isA. a call option on Intel stock.B. a commodity futures contract. a common share of Microsoft.C. a common share of Microsoft and a call option on Intel stock.D. a call option on Intel stock and a commodity futures contract.

An example of a derivative security is

A. a call option on Intel stock.

B. a commodity futures contract. a common share of Microsoft.

C. a common share of Microsoft and a call option on Intel stock.

D. a call option on Intel stock and a commodity futures contract.