Q17
An example of a derivative security is ______.
A.
a common share of General Motors
B.
a call option on Mobil stock
C.
a commodity futures contract
D.
B and C
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
An example of a derivative security is a call option on Mobil stock and a commodity futures contract. A derivative security is a financial instrument whose value depends upon the value of another asset.