Example of derivative securities is

A. return backed security

B. mortgage backed security

C. cash flow backed security

D. interest backed security

Answer: Option B

Solution(By Examveda Team)

Example of derivative securities is mortgage backed security. A derivative security is a financial instrument whose value depends upon the value of another asset. The main types of derivatives are futures, forwards, options, and swaps. An example of a derivative security is a convertible bond.