Derivatives Are Financial Instruments That Derive Their Value from Changes

question 37

Multiple Choice

Derivatives are financial instruments that derive their value from changes in any of the following underlying securities except:

• A) Stock prices
• B) Percentage discount on accounts receivable
• C) Interest rates
• D) Commodity prices

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Definitions:

False Alternative

A logical fallacy where only a limited set of options are presented, ignoring other viable alternatives.

Premises

Statements or propositions upon which an argument is based or from which conclusions are drawn.

Excludes

A term used to indicate that certain items or categories are not part of a group or set.

Alternatives

Other options or choices available in a given situation.