An Option Gives Its Owner the Right to Buy or Sell

question 152

Multiple Choice

An option gives its owner the right to buy or sell an asset. This asset is generally ________.

• A) preferred stock
• B) mutual funds
• C) corporate bonds
• D) common stock
• E) none of the above are correct

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Definitions:

Premium Pricing

A pricing strategy where goods or services are priced higher than the market average to emphasize their exclusivity or quality.

Everyday Items

Common products or goods used regularly for daily activities or needs.

Monopolistic Competition

A market structure where many companies sell products that are similar but not identical, allowing for competition based on quality, price, and brand.

Differentiated

Pertains to a marketing strategy where a company offers unique features, benefits, or product variations to stand out from competitors.