Many a times we read in the financial newspapers about a term “Derivative”. In this context, consider the following statements: 

  1. A derivative is an instrument which is settled at a Future Rate only. 
  2. The Value of this instrument gets derived from the change of the Interest Rates & Foreign Exchange Rates 
  3. In India, a Derivative can be traded in exchanges only. 

Which among the above statements is / are correct?

[A] Only 1
[B] Only 1 & 2
[C] Only 2 & 3
[D] All are correct

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