Which of the Following Is a Characteristic of a Derivative

question 52

Multiple Choice

Which of the following is a characteristic of a derivative?

• A)has one or more underlyings
• B)has one or more notional amounts
• C)exchanging of promises with a counterparty
• D)require or permit a net settlement
• E)all of the above

---

Definitions:

Diverse Observations

Encompasses the act of noticing or perceiving a wide range of different aspects, situations, or behaviors, emphasizing the importance of a broad perspective.

Simple Principles

Basic, fundamental rules or concepts that guide actions, decisions, or procedures.

Confound

A variable other than the one intended to be manipulated by the experimenter that may be responsible for the effect on the dependent variable, making alternative explanations possible.

Clowns

Entertainers who perform comical acts, using makeup and exaggerated expressions to amuse an audience; traditionally associated with circuses, parties, and theatrical performances.