An Option That Gives the Owner the Right to Sell

question 71

Multiple Choice

An option that gives the owner the right to sell a financial instrument at the exercise price within a specified period of time is a

• A)call option.
• B)put option.
• C)American option.
• D)European option.

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Definitions:

Marginal Product

The additional output generated by employing one more unit of a particular input, holding all other inputs constant.

Market Comparison

The analysis and evaluation of a company's performance, products, or services against those of its competitors within the same industry or market.

Marginal Product

The additional output produced by employing one more unit of a specific factor of production, keeping other inputs constant.

Equilibrium Quantity

The level of output at which the quantity supplied equals the quantity demanded, reflecting a market balance between sellers and buyers.