The correct answer is D. B and C.
A derivative security is a financial instrument whose value is derived from the value of an underlying asset. The underlying asset can be a stock, bond, commodity, or currency. Derivatives are often used to hedge risk or to speculate on the future price of an asset.
A common share of General Motors is not a derivative security. It is a security that represents ownership in a company. The value of a common share is based on the company’s performance and the market’s perception of its future prospects.
A call option on Mobil stock is a derivative security. It gives the buyer of the option the right, but not the obligation, to buy Mobil stock at a specified price on or before a specified date. The value of a call option is based on the difference between the strike price of the option and the market price of the stock, as well as the time to expiration of the option and the volatility of the stock.
A commodity futures contract is a derivative security. It is an agreement to buy or sell a specified amount of a commodity at a specified price on or before a specified date. The value of a commodity futures contract is based on the current market price of the commodity, as well as the time to expiration of the contract and the storage costs for the commodity.