Canadian Securities Course (CSC) Level 1 Practice Exam 2026 - Free CSC Level 1 Practice Questions and Study Guide

The correct answer encompasses all three categories—metals, grains and oil seeds, and energy—as they are all important segments in the commodities market that underlie derivative contracts. Derivatives based on these commodities allow investors and businesses to hedge risks or speculate on price movements.

Metals, including precious metals like gold and silver, are commonly used in derivatives due to their value and the market's interest in them. Grains and oil seeds, such as corn, wheat, and soybeans, are crucial for agricultural markets and are traded via futures contracts, making them key commodities in the derivatives space. Energy commodities, which include crude oil and natural gas, are vital for the global economy and often subject to volatility, attracting traders looking to manage exposure to these price fluctuations through derivative instruments.

Recognizing the significance of these three categories highlights how they each play a distinct role in the broader commodity market and are essential components of derivatives, thereby justifying the choice of all three as the underlying commodities for derivative contracts.