An Example of a Derivative Security Is ________

question 58

Multiple Choice

An example of a derivative security is ________.

• A) a common share of General Motors
• B) a call option on Intel stock
• C) a Ford bond
• D) a U.S. Treasury bond

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Definitions:

Capital

The collection of physical and financial assets used by an individual or organization to produce goods and services.

Services

Services like accounting, banking, cleaning, consulting, education, insurance, professional knowledge, medical care, and transportation that cannot be physically touched.

Goodwill

An intangible asset on a company's balance sheet that represents the premium paid over the fair market value of the acquired assets in a business acquisition.

Tangible Capital

Physical assets that are used in the operating activities of a business, such as buildings, machinery, and equipment.