A financial asset that represents a claim on another financial asset is called a(n) ____________.
A) initial public offering
B) derivative security
C) seasoned equity offering
D) Eurobond
E) subjugated (or junior) stock

Question

Quizplus · Accepted Answer

Derivative securities are financial instruments whose value is derived from the value of another asset, which they represent a claim on. This includes options, futures, and swaps, among others.

A Financial Asset That Represents a Claim on Another Financial