Vidyalelo
Management · Q577

International Finance and Treasury

Graduate and Post Graduate · Management · question 577

Q577

Type of financial security whose payoff is linked to any other security is called

A.
strong security
B.
semi-strong security
C.
derivate security
Answer
D.
non-derivate security

Answer: Option C

Solution

Answer: Option C
Solution:
Type of financial security whose payoff is linked to any other security is called derivate security. A derivative is a financial security with a value that is reliant upon or derived from, an underlying asset or group of assets a benchmark.