Derivative instruments are long-term hybrid-type securities meant to increase the return on investments.

Question

Quizplus · Accepted Answer

Derivative instruments are financial instruments with values that are derived from underlying assets or entities. They are primarily used for hedging and speculation purposes and do not necessarily have a long-term maturity. While they can potentially increase the return on investments, they can also involve a high level of risk and complexity.

Derivative Instruments Are Long-Term Hybrid-Type Securities Meant to Increase the Return