Which of the Following Is Most Likely True Regarding Options

question 69

Multiple Choice

Which of the following is most likely true regarding options?

• A)An option can only be purchased from a commercial bank.
• B)Options are never used with foreign currency.
• C)An option is a right to sell foreign currency.
• D)Options do not provide firms with flexibility.

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Definitions:

Journal Entries

Records of financial transactions in the double-entry bookkeeping system, noting debits and credits for each transaction.

Posting

The process of recording financial transactions in the ledger of an accounting system.

Debits

Entries on the left side of an accounting ledger, representing increases in assets or expenses and decreases in liabilities, equity, and income.

Laser Equipment

High-precision tools that use laser technology for various applications, including cutting, engraving, and marking materials.