Financial derivatives include ________.
A) stocks
B) bonds
C) futures
D) none of the above

Question

Quizplus · Accepted Answer

Financial derivatives specifically refer to contracts that are based on underlying assets or instruments, such as commodities, currencies, or securities. Futures are one type of financial derivative where two parties agree to buy or sell an asset at a predetermined price and time in the future. Therefore, (C) futures are the only option on this list that is a financial derivative. Stocks and bonds are securities but not derivatives.

Financial Derivatives Include ________