Derivatives Quiz

A type of stock

A foreign currency

A financial contract based on an underlying asset or benchmark (correct)

A type of bond

To reduce interest rates

To increase foreign exchange rates

To shift risk (correct)

To create new financial products

The right to buy or sell a security at any time

The obligation to buy or sell a security at a specified price

The obligation to buy or sell a security

The right to buy or sell a security at a specified price during a given time (correct)

<p>The right to sell a security</p> Signup and view all the answers