A Derivative Security Derives Its Value from an "Underlying" Security

question 18

Multiple Choice

A derivative security derives its value from an "underlying" security that is

• A)Any other security.
• B)Other securities that are not derivatives.
• C)Securities that are related to the "underlying" security.
• D)None of the above.

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Definitions:

Genetically Influenced Traits

Characteristics or features of an organism that are affected by its genetic makeup.

Adaptive

Referring to the ability or tendency to adjust effectively to new conditions or to changes in one's environment.

Sociobiology

An interdisciplinary field that emphasizes evolutionary explanations of social behavior in animals, including human beings.

Evolutionary Explanations

Theories that account for the development of traits and behaviors through the process of natural selection.