Question

What is the classification of derivatives based on the underlying assets?

a.

Embedded Derivatives and Commodity Derivatives

b.

Over the Counter (OTC) Derivatives and Exchange Traded Derivatives

c.

Securities and Risks

d.

Market Places

Posted under IC 89 Management Accounting

Answer: (a).Embedded Derivatives and Commodity Derivatives Explanation:Derivatives are classified based on underlying assets as Embedded Derivatives and Commodity Derivatives, each associated with different risks and marketplaces.

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Q. What is the classification of derivatives based on the underlying assets?
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