An Example of a Derivative Is A

question 117

Multiple Choice

An example of a derivative is a:

• A) futures contract.
• B) stock.
• C) bond.
• D) fixed-income security.

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Definitions:

Gross Margin Ratio

A financial metric expressing the percentage of revenue that exceeds the cost of goods sold, used to assess a company's financial health.

Net Sales

The total revenue from sales of products or services less returns, allowances, and discounts.

Cost of Goods Sold

The direct expenses related to producing goods sold by a company, including material costs and direct labor, essential for calculating a company's gross profit.

Current Ratio

It's a measure used to determine a business's capacity to fulfill obligations due in less than one year, through a calculation of current assets over current liabilities.