Which of the Following Statements Is True

Multiple Choice

Which of the following statements is true?

A) ​The ability to settle the derivative by actually buying or selling the related asset is referred to as net settlement.
B) ​The quantity or number of units specified by a derivative is known as the underlying.
C) ​A derivative instrument derives its value from a related asset or liability.
D) ​Usually, a derivative instrument requires little or no initial investment.