A Call Option Gives the Holder the Right

question 13

Multiple Choice

A call option gives the holder the right:

• A) but not the obligation to sell an asset at a predetermined price.
• B) but not the obligation to buy an asset at a predetermined price.
• C) and the obligation to sell an asset at a predetermined price.
• D) and the obligation to buy an asset at a predetermined price.

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Definitions:

Adrenaline

A hormone released into the bloodstream in response to physical or mental stress, increasing heart rate and energy.

Irrational Fear

A fear that is not based on reason or reality, often disproportionate to the perceived threat.

Coping Mechanism

Strategies or behaviors used to manage stress, anxiety, or trauma.

PTSD

Post-Traumatic Stress Disorder (PTSD) is a mental health condition triggered by experiencing or witnessing a terrifying event, characterized by flashbacks, nightmares, and severe anxiety.