Q550
Example of derivative securities is
A.
return backed security
B.
mortgage backed security
AnswerC.
cash flow backed security
D.
interest backed security
Answer: Option B
Solution
Answer: Option B
Solution:
Example of derivative securities is mortgage backed security. A derivative security is a financial instrument whose value depends upon the value of another asset. The main types of derivatives are futures, forwards, options, and swaps. An example of a derivative security is a convertible bond.