A Contract That Grants Its Buyer the Right, but Not

question 21

Multiple Choice

A contract that grants its buyer the right, but not the obligation, to sell an asset at a specified price is called a:

• A)futures contract.
• B)call option.
• C)preset contract.
• D)put option.
• E)primary contract.

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Definitions:

Necessaries

Items or services that are considered essential for maintaining a reasonable standard of living, such as food, clothing, and shelter.

Emancipation

The legal process through which a minor becomes self-supporting and assumes adult responsibility for their welfare.

Under Age

Refers to individuals who are below the legal age of majority, typically under 18 years old, and thus are restricted from certain activities and legal responsibilities.

Position and Condition

This phrase generally relates to the state or circumstances of a particular situation or entity at a certain time.