________ is not a derivative security.

Name: ________ is not a derivative security.
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Question

Quizplus · Accepted Answer

A share of common shares is not a derivative security because it represents direct ownership in a company and its value is not based on any underlying asset or contract. On the other hand, call options and futures contracts are examples of derivative securities because their value derives from an underlying asset or contract. Therefore, choice A is the best answer.

________ Is Not a Derivative Security