A financial instrument that's value is based on an underlying security or commodity is called a/an
A)insurance contract
B)employment contract
C)enterprise contract
D)derivative security

Question

Quizplus · Accepted Answer

A derivative security derives its value from an underlying asset or security, such as stocks, bonds, commodities, or currencies. Examples of derivative securities include options, futures, swaps, and forwards.

A Financial Instrument That's Value Is Based on an Underlying