Which of the Following Is Not True Regarding Derivatives

question 59

Multiple Choice

Which of the following is not true regarding derivatives?

• A)A derivative is a financial instrument whose value is based upon another financial instrument, stock index or interest rate, or interest rate index.
• B)Derivatives can be classified into two general types: forward-based and option-based derivatives.
• C)Unrealized holding gains and losses on derivatives are not recognized.
• D)SFAS No. 133 values derivatives at fair value.

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