Which of the following is NOT a type of equity derivative?*1 pointa) Stock optionsb) Stock bondsc) Stock futuresd) Stock swaps
Question
Which of the following is NOT a type of equity derivative?*1 pointa) Stock optionsb) Stock bondsc) Stock futuresd) Stock swaps
Solution
The correct answer is b) Stock bonds. Stock bonds are not a type of equity derivative. Equity derivatives are financial instruments whose value is derived from price movements of the underlying asset. The types of equity derivatives include stock options, stock futures, and stock swaps. Stock bonds, on the other hand, are not derived from the value of an underlying asset, but are a type of debt security.
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