A ﬁnancial asset that represents a claim on another ﬁnancial asset is called a(n) ____________.

Name: A ﬁnancial asset that represents a claim on another ﬁnancial asset is called a(n) ____________.
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A derivative security is a financial asset that represents a claim on another financial asset. It derives its value from the underlying asset, such as stocks, bonds, commodities, or currencies. Examples of derivative securities include options, futures, swaps, and forwards.

A ﬁNancial Asset That Represents a Claim on Another ﬁNancial