Question

Types of Financial Assets Match the description of the security to the type of financial asset. A security that provides a payoff that depends on the values of other assets. Multiple Choice equity security debt security derivative security None of these

Answer 1

Answer: Derivative security

Explanation:

Derivative security is referred to as the security that provides a payoff which depends on the values of other assets.

A derivative security is referred to as the financial instrument whereby the value depends on the value of another asset. There are different types of derivatives such as options, swaps, futures, and forwards. Example of derivative security is convertible bond.