An Option That Gives the Owner the Tight to Sell

question 7

Multiple Choice

An option that gives the owner the tight to sell a financial instrument at the exercise price within a specified period of time is a(n) ________.

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

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Definitions:

Judgment Creditor

A creditor who is legally entitled by a court’s judgment to collect the amount of the judgment from a debtor.

Court's Judgment

The final decision made by a judge or court in a legal case, determining the resolution of the dispute.

Debtor

A person or entity that owes money to another; the opposite of a creditor.

Marginal Cost Curve

A graphical representation showing how the cost to produce one additional unit changes as production increases.