A derivative security's payoff is based on other assets prices.
A derivative security is a financial instrument whose payoff is based on the value of another asset. Types of derivatives are futures, forwards, options, and swaps.
Also convertible bond is a derivative security because its value depends on the value of the underlying stock. A futures contract is a contract that trades on a regulated exchange.
Find out more on derivative security at: https://brainly.com/question/18723175