A security whose value is based on the value of another security is called a _________ security.
A) Primary
B) Secondary
C) Derivative
D) Real
E) cross-match

Question

Quizplus · Accepted Answer

A derivative security's value is based on the value of an underlying asset, which is typically another security, such as a stock or bond. Examples of derivative securities include options, futures contracts, and swaps.

A Security Whose Value Is Based on the Value of Another