Because puts and calls derive their value from the behaviour of some other real or financial asset, they are known as derivative securities.

Name: Because puts and calls derive their value from the behaviour of some other real or financial asset, they are known as derivative securities.
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Question

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Puts and calls are types of options, which are financial instruments whose value is dependent on the price of an underlying asset, making them derivative securities.

Because Puts and Calls Derive Their Value from the Behaviour