All of the following are examples of variable interests except:
A) Guarantees of debt.
B) Stock options.
C) Lease residual value guarantees.
D) Participation rights.
E) Asset purchase options.

Question

Quizplus · Accepted Answer

Stock options are not considered variable interests as they do not involve a financial interest in the variability of the entity's assets or liabilities. They are instead a form of compensation or investment that provides the holder with the right to purchase stock at a predetermined price.

All of the Following Are Examples of Variable Interests Except