Correct Answer: Options contracts

Solution : The correct answer is (c) Options contracts.

Options contracts are an example of derivative instruments. Derivatives are financial instruments whose value is derived from an underlying asset or benchmark. They are often used for hedging, speculation, or managing risk. Options contracts give the holder the right, but not the obligation, to buy (call option) or sell (put option) a specified underlying asset at a predetermined price (strike price) within a specific period of time. Options are commonly traded in options markets, and they can be based on various underlying assets such as stocks, commodities, currencies, or indexes.