The Owner of an American Put Option Has the ________

question 55

Multiple Choice

The owner of an American put option has the ________ an asset at a fixed price during a stated period of time.

• A) right to sell
• B) right to buy
• C) obligation to sell
• D) obligation to buy
• E) obligation to trade

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Definitions:

Revenue Earned

Income a company receives from its normal business activities, usually from the sale of goods and services to customers.

Financial Statements

Documents that summarize the financial activities and condition of a business, including the balance sheet, income statement, and cash flow statement.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that guide the financial reporting process.

Double-Entry Accounting

An accounting method that involves making two entries for every transaction, to maintain the balance of the accounting equation.