Derivative instruments include
A) Stocks.
B) Preferred stocks.
C) Stock options.
D) All the above.

Name: Derivative instruments include A) Stocks. B) Preferred stocks. C) Stock options. D) All the above.
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Question

Quizplus · Accepted Answer

Derivative instruments are financial instruments whose value is derived from an underlying asset. Stock options fit this definition as they derive their value from the underlying stock. Regular stocks and preferred stocks are not considered derivative instruments.

Derivative Instruments Include