An Option That Grants the Right, but Not the Obligation

question 252

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) A European call.

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Definitions:

C-F Bond

The carbon-fluorine bond (C-F bond) is one of the strongest in organic chemistry, imparting chemical stability and resistance to various compounds.

Electronegativity Difference

The measure of the difference in electronegativity between two bonded atoms, influencing the bond type (ionic, polar covalent, or nonpolar covalent).

Organic Compounds

Chemical compounds that contain carbon and are found in living organisms, often forming the basis of chemistry related to life.

C-H Bond(s)

The chemical bond between a carbon atom and a hydrogen atom, fundamental to the structure of all organic molecules.