Which is a derivative on the company's own common shares?
A)Interest rate swap contract.
B)Foreign exchange forward contract.
C)Employee stock option.
D)Commodity futures contract.

Question

Quizplus · Accepted Answer

An employee stock option is a type of derivative that gives employees the right to purchase the company's common shares at a predetermined price. As such, it is a direct derivative on the company's own common shares. The other choices listed are derivatives related to interest rates, foreign exchange, and commodities, and are not directly tied to the company's own shares.

Which Is a Derivative on the Company's Own Common Shares