There is no '-version' argument to /usr/bin/sh. /usr/bin/sh is actually ksh93 now in Solaris 11.
What you have done is run the equivalent of 'sh -v -e -r -i -s -o -n' where the sh man page says:
-v Print shell input lines as they are read. -e Exit immediately if a command exits with a non- zero exit status. -r If the -r flag is present the shell is a res- tricted shell (see rsh(1M)). -s If the -s flag is present or if no arguments remain, commands are read from the standard input. Any remaining arguments specify the positional parameters. Shell output (except for Special Commands) is written to file descriptor 2. -i If the -i flag is present or if the shell input and output are attached to a terminal, this shell is interactive. In this case, TER- MINATE is ignored (so that kill 0 does not kill an interactive shell) and INTERRUPT is caught and ignored (so that wait is interrup- tible). In all cases, QUIT is ignored by the shell. -n Read commands but do not execute them.
A single argument '-version' would be a violation of the POSIX standard options are single - followed by a single letter and multiple letters following each other are as if there was a space and a dash between them.
Long options with a double leading -- are supported by sh(1) and if you run: sh --version you will find the version of ksh on your shstem that is being used for /bin/sh