Which one of the following is an investment from which the payoff over time is derived from the performance of an underlying asset?

Question

Quizplus · Accepted Answer

A derivative security is an investment where the payoff over time is derived from the performance of an underlying asset. Examples of derivative securities include options, futures, and swaps. Common stock certificates, corporate bonds, and mortgage bonds have fixed payoffs and do not depend on the performance of an underlying asset.

Which One of the Following Is an Investment from Which