An Example of a Derivative Security Is

question 25

Multiple Choice

An example of a derivative security is

• A)a common share of Microsoft.
• B)a call option on Intel stock.
• C)a commodity futures contract.
• D)a call option on Intel stock and a commodity futures contract.

---

Definitions:

Surplus Labor

The part of the labor force that exceeds the amount needed for the current level of production.

Earthen Dams

Structures built from natural materials like earth and rock, primarily used to retain water and prevent flooding.

Unconditional Cash Transfers

Anti-poverty programs that give cash transfers (grants) to poor individuals with no strings attached in the hope that the recipients will improve their economic prospects by spending the money on either education or physical capital.

Economic Dependence

A condition where an individual, entity, or country relies significantly on another for financial support, resources, or economic well-being.