An American Call Option Allows the Buyer to

question 93

Multiple Choice

An American call option allows the buyer to

• A) sell the underlying asset at the exercise price on or before the expiration date.
• B) buy the underlying asset at the exercise price on or before the expiration date.
• C) sell the option in the open market prior to expiration.
• D) sell the underlying asset at the exercise price on or before the expiration date and sell the option in the open market prior to expiration.
• E) buy the underlying asset at the exercise price on or before the expiration date and sell the option in the open market prior to expiration.

Differentiate between federal law and the Uniform Commercial Code in governing transactions.

Understand the requirements for contract modifications under the UCC.

Distinguish between the mirror-image rule and UCC’s stance on contract terms and acceptance.

Identify different types of sales and the concepts of title as outlined by the UCC.

---

Definitions:

Direct Distribution

A strategy where products are sent directly from the manufacturer to the consumer without intermediary distributors or retailers.

Cross-Docks

Warehouse operations where incoming shipments are directly transferred to outgoing vehicles, minimizing storage and handling.

Capabilities

The skills, knowledge, tools, and other resources that an organization or individual possesses to perform a given task or achieve a specific goal.