The term "derivatives" refers to:
i.forwards; II)futures; III)swaps; IV)options
A)I and II only
B)I,II,and III only
C)III and IV only
D)I,II,III,and IV

Question

Quizplus · Accepted Answer

The term "derivatives" is a broad term that encompasses all four types of financial instruments listed in the options. Forwards, futures, swaps, and options are all derivatives because their value is derived from an underlying asset such as a commodity, currency or security. Thus, the best choice is option D which includes all four types of derivatives.

The Term "Derivatives" Refers To