A security that is neither debt nor equity but derives its value from an underlying asset that is often another security is called
A) hybrid security.
B) convertible security.
C) derivative security.
D) none of the above.

Question

Quizplus · Accepted Answer

A derivative security derives its value from an underlying asset, which can be another security, such as stocks, bonds, or commodities.

A Security That Is Neither Debt nor Equity but Derives