The Underlying Amount of a Derivative Instrument Is

question 26

Multiple Choice

The underlying amount of a derivative instrument is

• A)​related to the number of units specified in the derivative and the price that relates to the asset or liability underlying the derivative.
• B)​the change in the price or rate that relates to the asset or liability underlying the derivative.
• C)​the price or rate that relates to the asset or liability underlying the derivative.
• D)​the number of units that is specified in the derivative instrument.

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Definitions:

Electric Arc Welding

A process of joining metals by generating an electric arc between an electrode and the base material, melting the metals at the welding point.

Electric Shock Resistant

A characteristic of materials or equipment designed to minimize the risk of electric shock to individuals, often through insulation or grounding.

Injection Injury

A type of injury caused by high-pressure injection of substances such as chemicals, water, or air into the body, often leading to serious tissue damage.

Oxyacetylene Torch

A tool used for cutting, welding, and brazing metals by burning a mixture of oxygen and acetylene gas, producing a very hot flame.