Which of below are examples of derivative security? A) A common share of Microsoft. B) A call option on Intel stock. C) A commodity futures contract. D) A call option on Intel stock and a commodity futures contract. E) A common share of Microsoft and a call option on Intel stock. Also give justification for the chosen answer.

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 10MC
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Which of below are examples of derivative security? A) A common share of Microsoft. B) A call option on Intel stock. C) A commodity futures contract. D) A call option on Intel stock and a commodity futures contract. E) A common share of Microsoft and a call option on Intel stock. Also give justification for the chosen answer. 
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