Question #1
Reading: Reading 32 Introduction to Commodities and Commodity Derivatives
PDF File: Reading 32 Introduction to Commodities and Commodity Derivatives.pdf
Page: 1
Status: Correct
Correct Answer: A
Question
As opposed to stocks and bonds, commodities are most likely:
Answer Choices:
A. physical assets
B. traded on futures exchanges
C. characterized by lack of intrinsic value
Explanation
As opposed to financial assets such as stocks and bonds, commodities are usually physical
assets. While commodities do not have any cash flows, they do have intrinsic value and
can trade in spot markets.