Which of the Following Is NOT an Example of a Derivative

question 14

Multiple Choice

Which of the following is NOT an example of a derivative financial instrument?

• A) A forward exchange contract
• B) A commercial bill contract
• C) A futures contract
• D) An option contract

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Definitions:

Building Material

Materials used in the construction of buildings and structures, including wood, concrete, steel, bricks, and glass.

Condition Subsequent

A condition in a contract that, when met, can end obligations under the contract or terminate the contract itself after the contract has already been executed.

Contractual Clause

A provision or condition included within a contract that specifies the obligations, rights, or duties of the parties involved.

Dream Home

A term often used to describe an ideal residence that fulfills all of the homeowner's desires and requirements.