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Which of the following statements about Derivative Securities is true? Derivatives are not issued by firms. Instead, they are contracts or bets between two secondary
Which of the following statements about Derivative Securities is true? Derivatives are not issued by firms. Instead, they are contracts or bets between two secondary parties. If Apple common stock is the underlying asset in a particular derivative security then Apple will typically be the issuer of that security. A futures contract is a type of derivative security. Preferred stock is a type of derivative security. The majority of large public firms use derivative securities to hedge various risks. A derivative security represents ownership in the underlying asset
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