Derivatives Q2

2Which of the following statements is most likely to be correct about derivatives?

A
A derivative is a financial instrument that derives its value based on the performance of the underlying.
B
Derivatives are standardized financial instruments and cannot be customized.
C
The performance of a derivative is derived by replicating the performance of the underlying.

Option : A
Explanation : The value of a derivative is based on the performance of the underlying.

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