A(n)________ Is the Purchased Right,but Not the Obligation,to Buy or Sell

question 32

Multiple Choice

A(n) ________ is the purchased right,but not the obligation,to buy or sell a specified number of shares of a stock or other security at a predetermined price during a specified period.

• A) credit derivative
• B) secured bond
• C) option
• D) financial future
• E) commodity future

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Definitions:

Profits and Losses

The financial gain or loss that a business experiences, calculated as the difference between revenue and expenses.

Real Assets

Assets that have physical form or are tangible, such as real estate, commodities, or natural resources, as opposed to financial assets like stocks or bonds.

Wealth Distribution

The manner in which wealth is shared among individuals in a society, often analyzed for its levels of equality or inequality.

Coincidence of Wants

A situation in a barter economy where two parties each possess goods or services that the other wants, facilitating a direct exchange without the need for money.