A security whose value is based solely on the value of other assets is called a ________ security.
A)capital option
B)hedging
C)derivative
D)alternative asset
E)none of the above

Question

Quizplus · Accepted Answer

A derivative security derives its value from the value of an underlying asset or group of assets. It does not have any intrinsic value on its own. Examples of derivative securities include options, futures, and swaps.

A Security Whose Value Is Based Solely on the Value