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

Question of the Week: Level 1 – Derivatives

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    • MarkMeldrum
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      A derivative is least likely to be described as a financial:

      • A. asset.
      • B. contract.
      • C. instrument.
    • MarkMeldrum
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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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