Which of the following is not a derivatives?
- A) Option
- B) Futures
- C) Swap
- D) Forward Contract
- E) All of these are derivatives
Show answer
Answer: E) All of these are derivatives
Explanation
All of these are derivatives. A derivative is a contract whose value depends on an underlying asset, rate or index. Options, futures, swaps and forward contracts all meet that definition. They differ only in whether they are traded on an exchange and whether the parties must or may settle.