A Derivative Is a Financial Instrument Whose Value Is Determined

question 59

Multiple Choice

A derivative is a financial instrument whose value is determined by

• A) a regulatory body such as the SEC.
• B) an underlying security.
• C) futures and options.
• D) None of these options are correct.

---

Definitions:

Positive

Affirmative in attitude or quality; indicative of the presence of a particular condition, substance, or feature.

Poliomyelitis

An infectious viral disease that affects the nervous system, potentially leading to paralysis.

Sequela

A condition resulting as a direct consequence of a disease, differing from the initial condition, indicating long-term effects.

Limb Paralysis

The loss of muscle function in one or more limbs, rendering them unable to move or feel anything.