Which of the Following Best Defines an Option

question 268

Multiple Choice

Which of the following best defines an option?

• A) The lower bound of an option's value, or what the option would be worth if it were about to expire.
• B) A contract that gives its owner the right to buy or sell some asset at a fixed price on or before a given date.
• C) The value of a convertible bond if it could not be converted into common stock.
• D) The right to sell an asset at a fixed price during a particular period of time. The opposite of a call option.
• E) An option with payoffs in real goods.

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Definitions:

Military Troops

Refers to soldiers, particularly those belonging to the armed forces of a country, organized for warfare.

Powerful Unions

Labor unions that have significant influence over workplaces, industries, and politics, often advocating for workers' rights and better working conditions.

Banned

Prohibited by law or policy; often refers to the act of officially or legally forbidding something, such as books, substances, or activities.

Black Lives Matter

Civil rights movement sparked by a series of incidents of police brutality and lethal force against people of color.