Which of the following is a primary asset?
A) Call option.
B) Common stock.
C) Futures.
D) Put option.
E) All of the above.

Question

Quizplus · Accepted Answer

A primary asset is an underlying asset that is the basis of a derivative contract. Common stock is an example of a primary asset as it is the underlying asset for a stock option. Options, futures, and other derivatives are not primary assets but rather derive their value from them. Therefore, choice B is the best answer.

Which of the Following Is a Primary Asset