Derivatives in the Financial Market

A financial instrument that transforms the performance of the underlying asset

A financial instrument that derives its value from the performance of an underlying asset (correct)

A financial instrument that exchanges cash flows in the present based on an underlying value

A financial instrument that directly passes through the returns of the underlying asset

The asset that exchanges cash flows in the present

The asset that derives its value from the performance of the derivative

The asset that directly passes through the returns of the derivative

The asset that the derivative is based on (correct)

Exchange cash flows in the future based on an underlying value (correct)

Transform the performance of the underlying asset

Pass through the returns of the underlying asset

Transfer the price risk of underlying assets to a second party

<p>1,000 shares of Airbus (AIR)</p> Signup and view all the answers

<p>To derive value from the performance of the underlying asset</p> Signup and view all the answers