An Option Which Gives the Holder the Right to Sell

question 15

Multiple Choice

An option which gives the holder the right to sell a stock at a specified price at some time in the future is called a(n)

• A) Call option.
• B) Put option.
• C) Out-of-the-money option.
• D) Naked option.
• E) Covered option.

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Definitions:

Age

The length of time that a person or object has existed, typically measured in years from the date of birth or creation.

Encoding

The process by which information is transformed into formats that can be stored in memory.

Automatization

The process by which tasks become automatic after extensive practice, requiring less cognitive effort to perform.

Storage

In the context of cognition, refers to the retention of information in the memory over time.