Answer the following using 200 or more words in APA format. Ensure to cite references in APA format. 1. What is a derivative security? And, why is it…

Answer the following using 200 or more words in APA format. Ensure to cite references in APA format.1. What is a derivative security? And, why is it important?

Derivative security is a security whose price is dependent on or derived from a single orgroup of underlying assets. When the value of underlying assets change, so do the value ofderivatives…

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