n NISM Certifications
XIII NISM Series XIII
Medium

Which of the following best defines a derivative product?

Practice question from NISM Series XIII for SIF - Mock Test 9 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Derivative products can be from Equity / Currency or Commodity markets and are traded on a recognised stock exchange.

  2. B

    Derivatives are complex financial products and are traded mostly by Banks and Financial Institutions.

  3. C

    Derivatives are an understanding between two parties on one-to-one basis.

  4. Derivative is a product whose value is derived from the value of one or more underlying variables.

    Correct answer

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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