A Security Whose Value Is Based Solely on the Value

question 324

Multiple Choice

A security whose value is based solely on the value of other assets is called a ________ security.

• A)capital option
• B)hedging
• C)derivative
• D)alternative asset
• E)none of the above

---

Definitions:

Half

Refers to one of two equal parts into which something is or can be divided.

Centi-

A prefix denoting a factor of one hundredth (1/100) in the metric system.

One Hundredth

A fractional unit that is one part of a hundred, commonly expressed as 1/100.

Hydro-

A prefix indicating relation to water.