The correct choice is C, as equities refer to stocks or ownership shares in a company, rather than a type of derivative. Derivatives are financial instruments whose value is derived from the performance of an underlying asset, index, or rate. In contrast, equities represent direct ownership in a firm and do not derive their value from other assets.
Futures, options, and contracts are all types of derivatives, with futures being agreements to buy or sell an asset at a predetermined price at a future date, options providing the right (but not the obligation) to buy or sell an asset at a specific price within a specified time period, and contracts encompassing agreements between parties that may involve derivative transactions. Understanding the distinction between derivatives and traditional financial assets like equities is crucial in the context of personal financial management and investing strategies.