A Contract That Grants Its Buyer the Right, but Not

question 21

Multiple Choice

A contract that grants its buyer the right, but not the obligation, to sell an asset at a specified price is called a:

• A)futures contract.
• B)call option.
• C)preset contract.
• D)put option.
• E)primary contract.

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Definitions:

Leverage Ratio

A financial metric used to measure the degree of a company's debt compared to its assets, equity, or operational cash flow.

Financial Statements

Comprehensive reports that provide insights into a company's financial health, including balance sheets, income statements, and cash flow statements.

Stock Market

A marketplace where securities, such as stocks and bonds, are bought and sold.

Average Collection Period

The mean period it takes for an enterprise to collect payments due from its clients.