The Right to Buy a Given Quantity of an Underlying

question 74

Multiple Choice

The right to buy a given quantity of an underlying asset at a predetermined price on or before a specific date is called a(n) :

• A) put option.
• B) option writer.
• C) call option.
• D) arbitrage contract.

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Definitions:

Loam

A rich soil blend, containing a balance of silt, sand, and clay, along with organic matter.

Epiphytes

Plants that grow on other plants for physical support but do not derive nutrients from them, obtaining moisture and nutrients from the air, rain, and sometimes from debris accumulating around them.

Aerial Roots

Roots that are not buried in soil but instead hang in the air, found in certain plants, where they absorb moisture from the atmosphere and sometimes aid in attachment.

Soil PH

A measure of the acidity or alkalinity of soil, affecting nutrient availability, microbial activity, and plant growth.