The most important derivative instruments are
A)futures and options contracts.
B)common stocks.
C)corporate bonds.
D)government bonds.

Question

Quizplus · Accepted Answer

Futures and options contracts are the most important derivative instruments as they allow investors to manage risk by hedging against adverse price movements in the underlying asset. They also provide opportunities for speculation and profit making. Common stocks, corporate bonds, and government bonds are not derivative instruments, but rather are primary securities.

The Most Important Derivative Instruments Are