An Example of a Derivative Security Is ________

question 58

Multiple Choice

An example of a derivative security is ________.

• A) a common share of General Motors
• B) a call option on Intel stock
• C) a Ford bond
• D) a U.S. Treasury bond

---

Definitions:

Ounce

A unit of weight used in some countries, typically equal to one sixteenth of a pound or about 28.35 grams.

Hedge

An investment made to reduce the risk of adverse price movements in an asset, typically involving derivatives like options or futures.

Bushels

A unit of volume that is used to measure agricultural commodities.

Corn

A cereal plant which yields large kernels set in rows on a cob; an important crop for food, livestock feed, and ethanol production.