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.

---

Definitions:

Dow Jones

Dow Jones refers to the Dow Jones Industrial Average, a stock market index that measures the stock performance of 30 large companies listed on stock exchanges in the United States.

Adjustment

A modification made to accounts, financial statements, or records to ensure their accuracy and compliance with financial reporting standards.

Put Option

A contractual financial agreement that allows the owner the option, but not the requirement, to dispose of a predetermined quantity of a particular asset for a fixed price during a defined period.

Specific Price

A precise valuation or cost assigned to a good, service, or asset in a specific transaction or scenario.