n NISM Certifications
X NISM Series X
Medium

A derivative's value is derived from the value of ________.

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Some other asset

    Correct answer

  2. B

    Itself

  3. C

    Demand

  4. D

    Traded prices

Why this is the answer

Derivatives depend on an underlying asset, such as equities, commodities, or currencies, for their value.

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