An Option That Grants the Right, but Not the Obligation

question 25

Multiple Choice

An option that grants the right, but not the obligation, to sell shares of the underlying asset on a particular date at a specified price is called:

• A)either an American or a European option.
• B)an American call.
• C)an American put.
• D)a European put.
• E)European call.

---

Definitions:

Consolidated Income Statement

A financial document that summarizes the combined income, expenses, and profits of a parent company and its subsidiaries over a specific period.

Non-Controlling Interest

A financial interest in a subsidiary that is not owned by the parent company, reflecting a minority stake's share of the earnings and assets.

Sales Revenue

The income earned from selling goods or services.

Other Revenues

Revenue generated from secondary or ancillary activities, distinct from the main business operations.