Which of the following is a derivative asset?
I. Put option
II. Preferred stock
III. Futures contract
IV. Convertible Bond
A) III only.
B) I and II only.
C) I and III only.
D) II only.
E) I, II, and IV.

Question

Quizplus · Accepted Answer

A put option and a futures contract are both derivatives as they derive their value from an underlying asset. Preferred stock and convertible bonds are not derivatives. Therefore, the correct answer is C, which includes the two derivatives - put option and futures contract.

Which of the Following Is a Derivative Asset