Question

. Financial derivatives are the financial contract between the buyer and seller to buy or sell an ……………

with a predetermined rate for a future rate

(A) Fixed asset

(B) Underlying asset

(C) Floating asset

(D) None of these​

Answer 1

Answer:

(B) Underlying asset

Explanation:

Derivatives are financial contracts whose value is dependent on an underlying asset or group of assets. The commonly used assets are stocks, bonds, currencies, commodities and market indices. The value of the underlying assets keeps changing according to market conditions.

Answer 2

Answer:

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