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Which of the following best describes a financial derivative? A rate of change. A financial instrument that derives its value from the risk-free rate. A

Which of the following best describes a financial "derivative"?

A rate of change.

A financial instrument that derives its value from the risk-free rate.

A financial instrument that derives its value directly based on the profitability of an underlying firm.

A financial instrument that derives its value from another asset or financial instrument.

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