The Mayor Owns Property Next to One of the Proposed

question 32

True/False

The mayor owns property next to one of the proposed sites for the city's new baseball stadium. The mayor has a conflict of interest and should not vote on the location of the stadium when the city council takes action on the site.

---

Definitions:

Put Option

A financial contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.

Call Option

A fiscal arrangement that permits the owner to optionally buy a stock, bond, commodity, or another asset at a pre-specified price within a certain period, without being obliged to do so.

Specified Price

A designated price set for the execution of a transaction in securities, contracts, or a commercial agreement.

Options Contract

A financial agreement granting the buyer the opportunity, but not the obligation, to buy or sell an asset at a specific price on or before a certain date.