Which of the Following Is Not Correct with Respect to Derivative

question 17

Multiple Choice

Which of the following is not correct with respect to derivative securities?

• A) They are among the riskiest of securities in the financial securities markets.
• B) They can be used for hedging purposes.
• C) Examples of derivatives include futures, options and swaps.
• D) All of these are correct statements about derivatives.

---

Definitions:

Straight Line

The shortest path between two points, used in both geometric figures and in context like depreciation methods in accounting.

Opportunity Cost

The forfeit of not opting for the following most advantageous option when a decision is reached.

Good X

A placeholder term used in economics to represent a generic good or product in theoretical models and discussions.

Production Possibility Frontier

A curve depicting the maximum feasible amounts of two commodities that a society can produce with current technology and resources.