n NISM Certifications
NSM General NISM
Medium

The price of a derivative is basically determined by ________.

Practice question from NISM Series IV - Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Demand and supply

  2. B

    Exchange

  3. Underlying

    Correct answer

  4. D

    None of the above

Why this is the answer

The underlying asset's price drives derivative valuation.

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