Which One of the Following Actions Would Provide You with the Right

question 4

Multiple Choice

Which one of the following actions would provide you with the right, but not the obligation, to purchase the underlying asset during a specified period of time?

• A) the purchase of a call option
• B) the sale of a call option
• C) the purchase of a put option
• D) the sale of a put option
• E) the swap of a put option

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Definitions:

Patent

A form of intellectual property that gives its owner the legal right to exclude others from making, using, or selling an invention for a certain number of years.

Pigeon Pies

Traditional British pies made with pigeon meat, often served as a game dish.

Output

The aggregate production of merchandise or services by a corporation, sector, or economy.

Profit

The financial gain obtained when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.