An Instrument That Derives Its Value from Another Underlying Asset

question 43

Multiple Choice

An instrument that derives its value from another underlying asset is known as a(n) :

• A) hedge.
• B) derivative.
• C) basis.
• D) backdate agreement.
• E) original document.

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Definitions:

As-A-Service

A business model where products, software, or services are provided to customers through the internet, typically on a subscription basis.

Cloud Computing

Supplying a variety of services through the Internet, such as data storage, servers, databases, networking, and software.

Privacy Concern

Apprehensions or issues related to the unauthorized use or access to an individual's personal information.

Jurisdiction

The official power to make legal decisions and judgments, often within a specific geographical area or over certain types of legal cases.