The current market value of an off-balance-sheet item is determined by finding the current market value of the underlying item.

Question

Quizplus · Accepted Answer

The market value of an off-balance-sheet item, such as a derivative, is determined by finding the current market value of the underlying item, such as a stock or commodity. This is because the value of the derivative is derived from the value of the underlying item.

The Current Market Value of an Off-Balance-Sheet Item Is Determined