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:

Date Of Record

The specific date set by a company on which the shareholders must be on record to be eligible to receive dividends or other distributions.

Cash Dividend

A payment made by a company out of its profits to shareholders, usually in the form of cash.

Date Of Payment

Date of the dividend payment.