n NISM Certifications
VII NISM Series VII
Medium

Which of the following instruments is traded on the derivatives segment of a stock exchange?

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

Options

  1. A

    Equity shares

  2. B

    Bonds

  3. Options and futures

    Correct answer

  4. D

    Treasury bills

Why this is the answer

Derivatives derive their value from underlying assets like shares, indices, or commodities. Options and futures are standardized and traded on exchanges.

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