Canadian Securities Course (CSC) Practice Exam

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What are the two main types of derivatives mentioned in the text?

Options and forwards
Buy-in and Confirmation
Retractable preferreds and Delayed floater preferred
Foreign-pay preferreds and Deferred preferred shares

The correct answer is: Options and forwards

The two main types of derivatives mentioned in the text are options and forwards. Options refer to contracts that give the buyer the right, but not the obligation, to buy or sell an underlying asset at a specified price and time. On the other hand, forwards are contracts between two parties to buy or sell an asset at a specified price and time in the future. The other options, buy-in and confirmation, retractable preferreds and delayed floater preferred, and foreign-pay preferreds and deferred preferred shares, are all types of financial instruments that are not derivatives and are not related to options or forwards. Therefore, A is the correct answer.