A Put Option Is a Contract

question 13

Multiple Choice

A put option is a contract

• A) that gives the owner the right,but not the obligation,to buy shares of a stock at a specified price within the time limits of the contract.
• B) that gives the owner the right,but not the obligation,to sell shares of a stock at a specified price within the time limits of the contract.
• C) in which the seller agrees to provide a particular good to the buyer on a specified future date at an agreed-upon price.
• D) that gives the owner the right,but not the obligation,to buy or sell shares of a stock at a specified price within the time limits of the contract.

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Definitions:

Atomic Sentences

The simplest kind of sentences in logic that cannot be broken down into smaller parts, representing basic facts or assertions.

Truth Values

The attribution of truthfulness to a statement, typically classified as either true or false in classical logic.

Truth Table

A mathematical table used in logic to determine the validity of an argument or to show the truth value of a logical expression based on all possible scenarios.

Atomic Sentences

Simple statements in logic that cannot be broken down further into smaller statements.