An American Call Option Is

question 61

Multiple Choice

An American call option is:

• A) An obligation to purchase a security at a predetermined price on a predetermined date.
• B) The right, but not the obligation, to sell a security at a predetermined strike price.
• C) The obligation, at the option of the seller, to purchase a financial asset at a predetermined price on or before a specified date.
• D) A right, effective when the option is exercised by the seller, to purchase a stated quantity of a financial asset by or before a stated date at a price determined today.
• E) The right, but not the obligation, to purchase a security at a predetermined price on or before a predetermined date.

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Definitions:

Hard Outer Shell

A protective external layer found in some animals, including crustaceans and certain insects, which offers defense against predators and environmental conditions.

Amoeboid Cells

Cells that move or feed by forming extensions of their cytoplasm, known as pseudopodia.

Rhizarians

A diverse supergroup of amoeboid cells that often have hard outer shells, called tests, through which cytoplasmic projections extend; include forams, actinopods, and certain shell-less amoebas.

Unikonts

A group of eukaryotic organisms that include amoebas, most animals, and fungi, characterized by a single emergent flagellum.