Which of the Following Best Defines an Option

question 441

Multiple Choice

Which of the following best defines an option?

• A) The lower bound of an option's value, or what the option would be worth if it were about to expire.
• B) A contract that gives its owner the right to buy or sell some asset at a fixed price on or before a given date.
• C) The value of a convertible bond if it could not be converted into common stock.
• D) The right to sell an asset at a fixed price during a particular period of time. The opposite of a call option.
• E) An option with payoffs in real goods.

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Definitions:

Competence

Being able to use your skills effectively and learn new ones.

Relatedness

The feeling of connection or bond with others, often considered a fundamental human need influencing social interactions and personal well-being.

Avoidance Motivation

A behavior driven by the desire to avoid negative outcomes or stimuli, often leading to the evasion of certain situations or tasks.

Mindfulness

Being aware of your thoughts and feelings without becoming attached to them.