CFA Level 1
Derivatives

Identifying Exchange-Traded Derivatives

Very Easy Derivative Markets And Instruments Exchange-traded Derivatives

In the world of finance, derivatives are financial instruments whose value is derived from an underlying asset, index, or rate. One common category of derivatives is exchange-traded derivatives, which are standardized contracts that are traded on regulated exchanges. These instruments can help investors hedge risks or speculate on price movements efficiently.

Considering this context, which of the following is an example of an exchange-traded derivative?

Hint

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