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.

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Definitions:

Case File

A comprehensive collection of documents, evidence, legal briefs, and court orders relevant to a particular legal case.

Interviewee

The person who is being interviewed.

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Ambient sound that is present in a scene or environment but is not the focus of attention.