Derivatives
A)allow for the unbundling of risks.
B)can be sold separately to those most willing and able to bear the risk.
C)derive their value from the underlying asset.
D)All of the above are true of derivatives.

Question

Quizplus · Accepted Answer

All of the statements provided are true of derivatives. Derivatives allow for the unbundling of risks, which means that the underlying risk can be separated and sold separately to those most willing and able to bear the risk. Derivatives derive their value from the underlying asset, whether it be stocks, commodities, or other financial instruments.