Type of financial security having payoffs which are connected to some securities issued some time back is classified as
A. linked security
B. previous security
C. payoff security
D. derivative security
Answer: Option D
Solution (By Examveda Team)
Type of financial security having payoffs which are connected to some securities issued some time back is classified as derivative 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.This Question Belongs to Management >> International Finance And Treasury
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