A ____________ Is a Derivative Security That Gives the Owner

question 143

Multiple Choice

A ____________ is a derivative security that gives the owner the right, but not the obligation, to sell an asset at a fixed price for a specified period of time.

• A) Futures contract.
• B) Call option.
• C) Put option.
• D) Swap.
• E) Forward contract

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Definitions:

Debit Balance

An accounting entry that represents the total amount debited from an account, exceeding the credits made into it.

Sales Discount

A sales discount is a reduction in the price of a product or service offered by a seller to a buyer, usually for early payment or to incentivize purchase.

Purchase Discount

A reduction in the price paid for goods or services if payment is made within a specified time frame.

Early Payment

A financial transaction where a debt or obligation is settled before its due date.