Which of the following securities (if any) is not an example of an option?
A)warrant
B)convertible security
C)right
D)futures contract

Question

Quizplus · Accepted Answer

A futures contract is a derivative security that obligates the buyer/seller to purchase/sell an asset at a specified price and date in the future. It is not considered an option because it does not provide the option (but rather the obligation) to buy or sell an asset at a predetermined price. A warrant, convertible security, and right are all examples of options as they give the holder the right to buy or sell an underlying asset at a specific price and time.

Which of the Following Securities (If Any) Is Not an Example