Which of the Following Best Defines a European Options

question 231

Multiple Choice

Which of the following best defines a European options?

• A) A bond that can be exchanged for a fixed number of shares of stock for a specified amount of time.
• B) An option granted to an employee by a company giving the employee the right to buy shares of stock in the company at a fixed price for a fixed time.
• C) An option that can be exercised only on the expiration date.
• D) The act of buying or selling the underlying asset via the option contract.
• E) The last day on which an option can be exercised.

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Definitions:

Unrelated Businesses

Companies or divisions that operate in distinctly different industries or markets without significant overlap in products, services, or customer bases.

Virtual Organization

A company that primarily operates through electronic communication and does not have a physical central location, relying on the Internet and other technological means to function.

Efficient Bureaucracy

A system of organization that is effectively structured with clear rules and procedures to ensure maximum productivity and efficiency.

Low-Cost Leadership

A business strategy focused on becoming the lowest cost producer in an industry for a certain level of product quality.