Put Options Give the Buyer Which of the Following

question 89

Multiple Choice

Put options give the buyer which of the following?

• A)The right and obligation to sell a standardized contract of a financial asset or a futures agreement at a strike price set today.
• B)The right but not the obligation to sell a standardized contract of a financial asset or a futures agreement at the strike price set today up to the expiration date on the contract.
• C)The right to buy a standardized contract of a financial asset at a strike price set today.
• D)None of the above is correct.

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Definitions:

Receivables Balance

The total amount of money owed to a company by its customers for goods or services delivered, but not yet paid for.

Average Collection Period

The average number of days it takes for a business to receive payments owed by its customers.

Average Daily Sales

The average amount of sales generated per day over a specific period, commonly used to assess business performance.

Credit Policy

Guidelines that a company follows to determine the creditworthiness of customers, which influence terms of credit and collection procedures.