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

question 52

Multiple Choice

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.

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Definitions:

Diagram

A visual representation that outlines, explains, or clarifies complex data or relationships using symbols, icons, lines, and texts.

Collusive Oligopoly

A market situation where a few companies control a large market share and agree, often illegally, to fix prices, limit production, or divide markets to maximize profits.

Price Increase

The rise in the cost of goods or services over time or due to market conditions.

Price Cut

A reduction in the selling price of goods or services.