Which Is the Best Definition of a Call Option

question 106

Multiple Choice

Which is the best definition of a call option?

• A)The right to buy an asset at a fixed price during a particular time period.
• B)The right to sell an asset at a fixed price during a particular time period.
• C)A security that gives the holder the right to purchase shares of a stock at a fixed price over a period of time.
• D)The act of buying or selling the underlying asset via the option contract.

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Definitions:

3-Ethylpent-2-Ene

An organic compound with the formula \(C_7H_{14}\), characterized by an ethyl group and an alkene with a double bond in the 2-position on a pentane backbone.

Schiff Base

Chemical compounds that typically form by the condensation reaction between an amine and an aldehyde or ketone, characterized by a carbon-nitrogen double bond.

Imine

A chemical compound characterized by a nitrogen atom double-bonded to a carbon atom, which is also bonded to a hydrogen atom and a side chain.

Butyllithium

A powerful base and nucleophile used in organic synthesis to deprotonate hydrogens or to initiate anionic polymerization processes.