Derivatives Are Financial Instruments That Derive Their Value from Changes

question 28

Multiple Choice

Derivatives are financial instruments that derive their value from changes in any of the following underlyings except:

• A) Stock prices
• B) Percentage discount on accounts receivable
• C) Interest rates
• D) Commodity prices

---

Definitions:

Working Conditions

The environment in which an employee works, including aspects such as safety, hours, and physical demands.

Extrinsic Reward

Rewards or incentives given for performing a task that come from an external source, such as money, prizes, or recognition.

Share Options

Financial derivatives that give the holder the right, but not the obligation, to buy or sell shares of a stock at a specified price within a specified time.

Promotion

Marketing activities aimed at increasing awareness, interest, and sales of a product or service.