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Which one of the followings is not an example of the derivative market investment instruments?

A. A commercial bill contract
B. A forward contract
C. A futures contract
D. An options contract

User Bonkles
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1 Answer

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Final answer:

B. A forward contract is not an example of a derivative market investment instrument. A forward contract is a private agreement whereas the other options are traded on an exchange.

Step-by-step explanation:

The correct answer is B. A forward contract.

A forward contract is a type of derivative market investment instrument in which two parties agree to buy or sell an asset at a specified price on a future date. It is a private agreement and is not traded on an exchange. Therefore, it is not considered a derivative market investment instrument.

On the other hand, A, C, and D are examples of derivative market investment instruments:

  • A. A commercial bill contract is a type of short-term debt instrument that is discounted and matures in less than one year.
  • C. A futures contract is a standardized agreement to buy or sell an asset at a future date at a predetermined price. It is traded on an organized exchange.
  • D. An options contract gives the holder the right, but not the obligation, to buy or sell an asset at a predetermined price on or before a specific date.

User Qiqi
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