An Option That Gives the Owner the Tight to Sell

question 7

Multiple Choice

An option that gives the owner the tight to sell a financial instrument at the exercise price within a specified period of time is a(n) ________.

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

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Definitions:

Contribution Margin

The amount remaining from sales revenue after variable expenses are deducted, indicating the potential profitability of products.

Net Operating Income

A measure of a company's profitability from its core business operations, excluding non-operating income and expenses.

Variable Expense Ratio

A measurement that indicates the proportion of variable expenses to sales, showing how costs change with sales volume.

Break-even Point

The sales amount where the total income matches the total expenses, leading to neither profit nor loss for the company.