A Call Option Gives the Owner the Right to Sell

question 130

True/False

A call option gives the owner the right to sell 100 shares of a stock at a guaranteed price before a definite expiration date.

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Definitions:

Negative

In the context of charge, negative refers to an electrical charge of the same type carried by electrons.

Ionic Compound

A chemical compound composed of ions held together by electrostatic forces termed ionic bonding.

Polar Nature

A characteristic of molecules that have an uneven distribution of electron density, resulting in regions of partial positive and negative charge which makes them interact with other polar substances including water.

Attractive Forces

Forces that cause atoms, ions, or molecules to come together, and include various types of chemical bonds and intermolecular interactions.