Answered

In derivative securties, which of the following is false?
a. price depends on the market conditions, delivery of the underlying asset happens in the future.
O b. tehy are used for hedging.
c. they are used for speculation.
d. price is pre-specified, delivery of the underlying asset happens in the future.



Answer :

GinnyAnswer

Final answer:

Derivative securities involve hedging and speculation, but their prices are not pre-specified.


Explanation:

Derivative securities play a crucial role in financial markets, offering opportunities for hedging risks and engaging in speculation. However, one of the statements provided is false. It is inaccurate to state that derivative securities have a price that is pre-specified. In reality, the price of derivative securities depends on market conditions and is not pre-specified.


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