Derivatives Q42

42Analyst 1: Derivatives can be combined with other derivatives or underlying assets to form hybrids.
Analyst 2: Derivatives can be issued on weather, electricity, and disaster claims.
Which analyst’s statement is most likely correct?

Option : C
Explanation : Derivatives can be combined with other derivatives or underlying assets to form hybrids. Derivatives can be issued on a variety of such diverse underlyings such as weather, electricity, and disaster claims.

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