When a Company Writes a Call Option on New Stock

question 75

Multiple Choice

When a company writes a call option on new stock in the company,it is called a:

• A)convertible bond.
• B)put option.
• C)stock option.
• D)warrant.
• E)stock.

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Definitions:

ADH

Antidiuretic hormone, a hormone that helps to control the balance of water in the body by affecting the amount of urine the kidneys produce.

Parathyroid Hormone

A hormone secreted by the parathyroid glands that regulates calcium levels in the blood, critical for maintaining bone health and function.

Kidney

An organ in vertebrates that filters waste products from the blood, regulates blood pressure, electrolyte balance, and red blood cell production.

Liver

Largest gland of the body, lying in the upper-right quadrant of the abdomen just inferior to the diaphragm; secretes bile and is of great importance in carbohydrate and protein metabolism and in detoxifying chemicals.