Johnny B Goode & Company Signed a Written Call Option Agreement

True/False

Johnny B. Goode & Company signed a written call option agreement with Golden Oldies Entity. The contract stipulates that in exchange for providing services, Johnny B. Goode can call 2 million of Golden Oldies' common equity shares at a strike price of €2 each. The call option expires in two years. However the price of Golden Oldies' stock never rises above €1.50 over the two year period. Thus, Johnny B. Goode never exercises the call option. This agreement between Johnny B. Goode and Golden Oldies does not qualify as a financial instrument.