Which of the following is classified as a common derivative instrument?

Futures contracts are classified as a common derivative instrument because they are financial contracts that obligate the buyer to purchase, or the seller to sell, an asset at a predetermined future date and price. Their value is derived from an underlying asset, which may include commodities, stocks, or indices. This characteristic is fundamental to derivative instruments, where the value depends upon the performance of an underlying entity.

In contrast, equity securities represent ownership in a company and are not derivatives, as they do not derive their value from another asset in the same way futures do. Real estate investments involve owning physical property and are not considered derivatives, as their value is based on market conditions and property attributes rather than a separate underlying asset. Fixed assets, such as property, plant, and equipment, are tangible items a business uses in operations and do not fit the definition of derivatives either, as they do not derive their value from other financial instruments.

Thus, futures contracts stand out as the only option that meets the criteria of being a derivative instrument.