A security whose payoffs (returns) depend on the value of another security is known as a(n) ____.
A) interest rate swap
B) master limited partnership
C) contingent claim
D) extendible note

Question

Quizplus · Accepted Answer

A contingent claim's payoff is dependent on the value of another security. Interest rate swaps, master limited partnerships, and extendible notes do not necessarily have payoffs dependent on another security's value.

A Security Whose Payoffs (Returns) Depend on the Value of Another