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Correct Option is fluctuates with the price of the so-called “underlying” of the contract

Derivative is a contract between two or more parties whose value is based on an agreed-upon underlying financial asset, index, or security. Depending on the type of derivative, its fair value or price will be calculated in a different manner. Futures contracts are based on the spot price along with a basis amount, while options are priced based on time to expiration, volatility, and strike price.  

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