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sveticcg [70]
3 years ago
15

Which of the following does not describe​ derivatives? A. These financial instruments are often used to speculate. B. Insurance

is required when purchasing derivative securities. C. They are assets that derive their economic value from an underlying​ asset, such as a stock or bond. D. These financial instruments are often used to hedge against risk
Business
1 answer:
Elden [556K]3 years ago
7 0

Answer:

B. Insurance is required when purchasing derivative securities

Explanation:

  • A derivative is a contract that is drives its values to form the underlying entity and can be interest rates and assets and includes the insurance against the price movement such as hedging.
  • <u>Some of the common derivatives are the futures, swaps and the options and forwards. </u>
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The operations and accounting for the cost of production of Orange Co. will be different from Pineapple Company's.  The difference is a reflection of their statuses as manufacturer and merchandiser respectively.  Orange Co. manufactures and sells goods while Pineapple Company sell manufactured goods.

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(Being the short-term investment is purchased)

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