The example of derivative securities include ______________?
Correct answer: D. all of the above
- A. swap contract
- B. option contract
- C. futures contract
- D. all of the above
Explanation
Swaps, options and futures are all derivatives because their values or payoffs are linked to an underlying asset, rate or index. Therefore the inclusive option is required.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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