Below are given some sentences out of which the sentence numbered 4 has been correctly placed. The rest of the sentences A,B,C,D,E,F need to be arranged correctly in order to form a logical order.

A.      A derivative is a contract between two or more parties whose value is based on an agreed-upon underlying financial asset (like a security) or set of assets (like an index).

B.      Generally belonging to the realm of advanced investing, derivatives are secondary securities whose value is solely based (derived) on the value of the primary security that they are linked to.

C.      A futures contract, for example, is a derivative because its value is affected by the performance of the underlying asset.

4.       In and of itself a derivative is worthless.

D.      Futures contracts, forward contracts, options, swaps and warrants are commonly used derivatives.

E.       Common underlying asset instruments include bonds, commodities, currencies, interest rates, market indexes, and stocks.

F.       Similarly, a stock option is a derivative because its value is "derived" from that of the underlying stock.