Common types of derivatives used as hedging instruments include all of the following except
A) options
B) swaps
C) convertible bonds
D) forwards and futures

Question

Quizplus · Accepted Answer

Convertible bonds are a type of corporate bond that can be converted into a predetermined number of the company's equity shares at certain times during its life, usually at the discretion of the bondholder. They are not primarily used as hedging instruments. Options, swaps, forwards, and futures are all common derivatives used for hedging purposes.

Common Types of Derivatives Used as Hedging Instruments Include All