Which of the following securities 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 separate type of derivative security that obligates the buyer/seller to purchase/sell a specific underlying asset at a predetermined price and time in the future. It is not an option, which gives the holder the right but not the obligation to buy/sell the underlying asset at a predetermined price and time in the future. Warrants, convertible securities, and rights are all examples of options.

Which of the Following Securities Is Not an Example of an Option