An Option That Gives the Owner the Right to Sell

question 71

Multiple Choice

An option that gives the owner the right to sell a financial instrument at the exercise price within a specified period of time is a

• A)call option.
• B)put option.
• C)American option.
• D)European option.

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Definitions:

Cash Flow Ratio

A liquidity ratio that measures a company's ability to cover its short-term liabilities with its cash flows from operations.

Total Assets

Total Assets refer to the sum of all assets owned by a company, including both current and non-current assets, indicating the total resources at a company's disposal.

Company Performance

An evaluation of a company's ability to generate earnings, revenue, and other key metrics for success and stability.

Noncash Investing

Investment activities that do not involve immediate cash transactions, such as acquiring assets through the issuance of stock or the exchange of one asset for another.