All of the following are equity instruments except:
A)forward rate agreements.
B)non-puttable ordinary shares.
C)preference shares that do not carry an unconditional right to cash.
D)call options that allow the holder to purchase a fixed number of non-puttable ordinary shares for a fixed amount of cash.

Question

Quizplus · Accepted Answer

Forward rate agreements are a type of derivative instrument used for managing interest rate risk, and are not considered equity instruments. The other options mentioned (non-puttable ordinary shares, preference shares that do not carry an unconditional right to cash, and call options on non-puttable ordinary shares) are all examples of equity instruments.

All of the Following Are Equity Instruments Except