A Derivative Is a Financial Instrument Whose Value Is Determined

question 61

Multiple Choice

A derivative is a financial instrument whose value is determined by:

• A) a regulatory body such as the FTC.
• B) a primitive or underlying asset.
• C) hedging a risk.
• D) hedging a speculation.
• E) None of these.

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Definitions:

Monetary Considerations

Factors related to financial aspects, including costs, expenses, and economic benefits.

Career Success

The achievement of personal and professional goals and milestones in one's career, often measured by promotions, recognition, and personal fulfillment.

Training

involves educating, instructing, or developing oneself or others in skills and knowledge that relate to specific useful competencies to improve performance.

Workforce

The workforce consists of all the people engaged in or available for work, either in a country or in a particular company or industry.