Which of the following is NOT an example of a derivative security?
A) Futures.
B) Options.
C) Swaps.
D) Forward contracts.
E) Preferred stock.

Question

Quizplus · Accepted Answer

Preferred stock is a type of equity security and is not considered a derivative security. Derivative securities are financial instruments whose value is derived from the value of an underlying asset, such as a stock, commodity, or exchange rate. Examples of derivative securities include futures, options, swaps, and forward contracts.

Which of the Following Is NOT an Example of a Derivative