An example of a derivative asset is
A) a common stock.
B) a municipal bond.
C) an index future.
D) a preferred stock.

Question

Quizplus · Accepted Answer

An index future is an example of a derivative asset as its value is derived from the value of an underlying financial asset or index, such as the S&P 500. The other options are not derivative assets as their value is not derived from an underlying asset or index - a common stock, preferred stock, and municipal bond all represent ownership or debt in a specific company or municipality.

An Example of a Derivative Asset Is