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

---

Definitions:

After-Tax Discount Rate

The interest rate used in discounted cash flow analysis to calculate the present value of future cash flows after accounting for taxes.

Income Tax Rate

The rate at which taxes are levied on an individual or company's income.

Discount Factor

A multiplier used in discounted cash flow (DCF) analysis to determine the present value of future cash flows.

Income Tax Rate

The measure at which income is taxed, affecting both companies and individuals.