An Option Is a Contract That Always

question 99

Multiple Choice

An option is a contract that always

• A) gives the owner the right,but not the obligation,to buy shares of a stock at a specified price within the time limits of the contract.
• B) gives the owner the right,but not the obligation,to sell shares of a stock at a specified price within the time limits of the contract.
• C) states that the seller agrees to provide a particular good to the buyer on a specified future date at an agreed-upon price.
• D) gives the owner the right,but not the obligation,to buy or sell shares of a stock at a specified price within the time limits of the contract.

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Definitions:

Liabilities

Financial obligations or debts owed by a business to creditors, which can be current (due within one year) or long-term.