If You Want the Right, but Not the Obligation, to Buy

question 11

Multiple Choice

If you want the right, but not the obligation, to buy a stock at a specified price you should:

• A)buy a call.
• B)sell a call.
• C)buy a put.
• D)sell a put.
• E)either sell a call or buy a put.

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Definitions:

Air Currents

Movements of air resulting from atmospheric pressure differences, leading to phenomena like wind.

Breeze

A gentle, light wind that is often considered refreshing and pleasant.

Excavated

The act of digging up or removing earth to uncover and discover something buried.

Mammoth

A large, extinct species of the elephant, known for its long curved tusks and considerable size, that lived during the Pleistocene epoch.