Which Option Gives the Right to Buy an Underlying Asset

question 53

Multiple Choice

Which option gives the right to buy an underlying asset at a fixed price?

• A)Put option.
• B)American option.
• C)Call option.
• D)Binomial option.

---

Definitions:

Government Expenditures

The total amount of money spent by the government on various types of goods and services, including infrastructure, education, and defense.

Keynesian Analysis

An economic theory proposing that government intervention can help stabilize the economy through spending and tax policies.

Aggregate Demand

The total demand for all goods and services in an economy at different price levels, within a given time period.

Tax Cuts

Reduction in tax rates intended to stimulate economic activity or achieve other policy goals.