An Example of a Derivative Security Is

question 54

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.
• E) a common share of Microsoft and a call option on Intel stock.

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Definitions:

Uniform Commercial Code

A broad collection of legislative measures governing every aspect of commerce in the United States.

Interstate Commerce

Commercial transactions or traffic that cross state boundaries, regulated by the federal government in the United States.

Federal Law

The body of law created by the federal government of a country, which applies to all its citizens and territories.

Constitutional Law

The general limits and powers of a government as interpreted from its written constitution.