Subjects
Case Briefs
Practice Tests
Pricing
Dashboard
Practice
Back to derivatives law
Question 1 of 20
Under the Commodity Exchange Act (CEA), which of the following best describes the fundamental characteristic of a 'derivative' contract?
A.
A contract that requires the immediate physical exchange of a commodity for cash.
B.
A financial instrument whose value is determined by the price of an underlying asset, index, or reference rate.
C.
A corporate bond that pays a fixed interest rate until maturity.
D.
An equity security representing ownership in a regulated investment company.
Check Answer