The Right to Buy a Given Quantity of an Underlying

question 74

Multiple Choice

The right to buy a given quantity of an underlying asset at a predetermined price on or before a specific date is called a(n) :

• A) put option.
• B) option writer.
• C) call option.
• D) arbitrage contract.

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Definitions:

Classical Management

A theory of management that emphasizes structured organization, hierarchy, and clear, defined roles and duties to enhance efficiency.

Productivity

The efficiency at which goods and services are produced, often measured by the output per unit of input.

Economic Incentives

Financial rewards or benefits used to motivate individuals or entities towards certain behaviors that align with economic goals.

Productivity

The efficiency at which an individual or organization can produce goods or services, often measured in terms of output per unit of input.