What Is an Option

question 12

Multiple Choice

What is an option?

• A)A contract that gives the holder the right to sell an instrument at a pre-specified price.
• B)A contract that is derived from some other underlying quantity,index,asset or event.
• C)A contract that gives the holder the right to acquire an instrument at a pre-specified price.
• D)A contract that gives the holder the right to buy or sell something at a specified price.

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Definitions:

Fetal Organs

The organs inside a fetus that develop during pregnancy, crucial for life support upon birth.

First Trimester

The initial stage of pregnancy that spans from conception to 12 weeks, during which vital development such as implantation, placenta formation, and organ development occurs.

Developing Fetus

A term referring to an embryo that has reached a stage of development where it possesses recognizable human features, often considered to be after the first trimester of pregnancy.

Newborns

Infants in their first few weeks of life, characterized by rapid physical and neurological development and high dependency on caregivers.