Which one of the following is a derivative asset?
A)common stock
B)option contract
C)government bond
D)preferred stock
E)corporate bond

Question

Quizplus · Accepted Answer

An option contract is a derivative asset because its value is derived from the value of an underlying asset, such as a stock, bond, or commodity. Unlike common or preferred stocks and government or corporate bonds, which are direct securities, derivatives like options gain their value from the performance of these underlying assets.

Which One of the Following Is a Derivative Asset