Which of the following is a derivative financial asset?
A) A mortgage
B) Commercial paper
C) A Treasury bill
D) A financial futures contract

Question

Quizplus · Accepted Answer

A financial futures contract is a derivative financial asset because its value is derived from an underlying asset, such as a stock, bond, or commodity. In contrast, a mortgage, commercial paper, and Treasury bill are all considered primary financial assets because they represent a direct claim on an underlying asset or issuer.

Which of the Following Is a Derivative Financial Asset