A Put Option Can Best Be Defined As

question 165

Multiple Choice

A put option can best be defined as:

• A) An option that gives the owner the right, but not the obligation, to buy an asset.
• B) An option that gives the owner the right, but not the obligation, to sell an asset.
• C) Risk that futures prices will not move directly with cash price hedged.
• D) An agreement by two parties to exchange, or swap, specified cash flows at specified intervals in the future.
• E) An agreement that gives the owner the right, but not the obligation, to buy or sell a specific asset at a specific price for a set period of time.

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Definitions:

Business Ethics

The study of appropriate business policies and practices regarding potentially controversial subjects including corporate governance, insider trading, bribery, discrimination, and corporate social responsibility.

Primary Stakeholders

Individuals or groups that have a direct interest or stake in the actions, success, or policies of an organization, including customers, employees, and investors.

Corporate Citizenship

Refers to a company's responsibilities toward society. This concept emphasizes the importance of acting in a socially responsible manner that goes beyond profit-making.