An example of a derivative security is
A. a common share of Microsoft.
B. a call option on Intel stock.
C. a commodity futures contract.
D. a call option on Intel stock and a commodity futures contract.
E. a common share of Microsoft and a call option on Intel stock.
D. a call option on Intel stock and a commodity futures contract.
The values of a call option on Intel stock and a commodity futures contract are derived from that of an underlying asset; the value of a common share of Microsoft is based on the value of the firm only.
You might also like to view...
Inseparability means that the production and consumption of a service occur almost simultaneously
Indicate whether the statement is true or false
Royer Corporation engaged in this transaction: Purchased land and building with a mortgage. Indicate which section, if any, the above transaction would appear in, or relate to, on a statement of cash flows
a. Financing activities section b. Operating activities section c. Investing activities section d. Schedule of noncash investing and financing transactions
A merchandising business will earn an income before income taxes of exactly $0 when
a. net sales equals cost of goods sold. b. operating expenses equal net sales. c. gross margin equals operating expenses. d. cost of goods sold equals gross margin.
______ organizations like Etsy use the power of business to solve social and environmental problems. To be this type of organization, there are certain certification requirements.
A. Hybrid B. B Corp C. CSR Corp D. Charity