Which One of the Following Is a Derivative Asset

question 35

Multiple Choice

Which one of the following is a derivative asset?

• A)common stock
• B)option contract
• C)government bond
• D)preferred stock
• E)corporate bond

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Definitions:

LIBOR

The London Interbank Offered Rate, a benchmark interest rate at which major global banks lend to one another, often used as a reference rate in financial markets.

SONIA

Sterling Overnight Index Average, an interest rate benchmark that reflects the average of the interest rates that banks in London pay to borrow sterling overnight from other financial institutions.

Tokyo Interbank Rate

The interest rate at which banks lend to each other in the Tokyo money market, similar to LIBOR in London.

Euribor

The interest rate at which banks lend to each other in euros within the Euro interbank market.