An Option That Grants the Right, but Not the Obligation

question 254

Multiple Choice

An option that grants the right, but not the obligation, to sell shares of the underlying asset on a particular date at a specified price is called:

• A) Either an American or a European option.
• B) An American call.
• C) An American put.
• D) A European put.
• E) A European call.

---

Definitions:

Widespread Sweating

The release of sweat from sweat glands across much of the body's surface, typically in response to heat or stress.

Sympathetic

Pertaining to the part of the autonomic nervous system that prepares the body for stress by accelerating the heart rate, among other responses.

Sympathetic Impulses

Nerve impulses transmitted by the sympathetic nervous system, part of the autonomic nervous system that controls the body's responses to stress or emergency situations.

Angry

A strong emotional state or reaction characterized by annoyance, displeasure, or hostility.