Which of the following instruments are contracts but are not securities
A)stocks
B)options
C)swaps
D)a and b
E)b and c

Question

Quizplus · Accepted Answer

Stocks and options are both considered securities, while swaps are a type of contract but are not classified as securities. Therefore, option A is incorrect because stocks are securities, and option B is incorrect because options are also securities. Option C is correct because swaps are contracts but not securities. Option D is incorrect because it includes both A and B, which are both securities. The correct answer is therefore E, which accurately identifies the two instruments that are contracts but not securities (options and swaps).

Which of the Following Instruments Are Contracts but Are Not