Which of the following contracts is NOT an example of a debt contract in terms of how finance defines debt? A. A Corporate Bond B. A share of Preferred Stock C. A Car Lease D. An Options Contract E. All the above contracts are debt contracts Solution Corporate Bond , Preferred stock or Car lease are debt as all have specific payment obligations as per the terms. An Option contract is a derivative instrument whose value depends on the the value of the underlyinf asset like stock, commodity etc. Option contract is not in the nature or debt instument , it is a contract to buy or sell a particular asset at a future date at an agreed price. So Correct answer is D. .