Which of the following financial instruments can underlie an option contract?
A) interest bearing instruments
B) financial assets
C) shares in other entities
D) all of the given answers

Question

Quizplus · Accepted Answer

Option contracts can be based on a variety of financial instruments, including interest-bearing instruments, financial assets (such as stocks, bonds, futures contracts, etc.), and shares in other entities. Therefore, option contracts can be based on any of the given options, making D the correct answer.

Which of the Following Financial Instruments Can Underlie an Option