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Basic Question 3 of 6
A derivative is most accurately defined as a financial instrument that provides ______.
B. an adjustment to another asset's level of risk
C. an agreement between two parties to provide something for each other
A. a return based on the return of another asset
B. an adjustment to another asset's level of risk
C. an agreement between two parties to provide something for each other
User Contributed Comments 3
| User | Comment |
|---|---|
| mbowa | These answers appear to be dependent on the key words |
| ibrahim18 | Option C is interesting. ...to provide something for each othe |
| zhefuli | C sounds like marriage. |
I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
Learning Outcome Statements
define a derivative and describe basic features of a derivative instrument
CFA® 2025 Level I Curriculum, Volume 5, Module 1.