An Option Issued by an Individual That Gives Its Owner

question 285

Multiple Choice

An option issued by an individual that gives its owner the right to buy an asset at a fixed price on or before a given date is called a(n) :

• A) American call option.
• B) American put option.
• C) American warrant.
• D) European call option.
• E) European put option.

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Definitions:

Quarter

A three-month period on the financial calendar that acts as a basis for periodic financial reporting and dividends.

Post-Closing Trial Balance

A summary of all accounts after closing entries are made, used to check the accuracy of closing entries and the balance of permanent accounts.

Adjusted Trial Balance

A list of all accounts and their final balances after all end-of-period adjusting entries have been made, used to prepare financial statements.

Revenue Recognition

The accounting principle that determines the specific conditions under which revenue is recognized and recorded in financial statements.