CFA CFA Level 1 Question of the Week: Level 1 – Derivatives

Question of the Week: Level 1 – Derivatives

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    • Avatar of MarkMeldrumMarkMeldrum
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        A derivative is least likely to be described as a financial:

        • A. asset.
        • B. contract.
        • C. instrument.
      • Avatar of MarkMeldrumMarkMeldrum
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          The correct answer is Option A. 

          Derivatives are created in the form of legal contracts.  Also, the most common definition of a derivative is that they are “financial instruments that derive their value from the performance of an underlying asset.”

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