Which One of the Following Grants Its Owner the Right

question 35

Multiple Choice

Which one of the following grants its owner the right to buy or to sell an asset at a fixed price at any time during a stated period?

• A) American option
• B) Forward contract
• C) Futures contract
• D) Swap
• E) European option

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Definitions:

Reds

Refers colloquially to red wine or to teams wearing red uniforms; context could specify further meaning.

Post Hoc

Short for 'post hoc ergo propter hoc,' a logical fallacy implying that since one event followed another, it must be caused by it.

Fallacy

A logical fallacy that undermines the validity of an argument.

Red Sweater

A clothing item designed for the upper body, characterized by its red color and typically made from wool or synthetic materials.