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.

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Definitions:

Investment Account

An account held at a financial institution that holds securities, cash, and other investments, used for the purpose of long-term or short-term investing.

Carrying Value

The amount at which an asset is recognized on the balance sheet after deducting accumulated depreciation and impairment losses.

Inventory

Goods and materials that a business holds for the ultimate goal of resale.

Declared Dividend

A dividend that has been announced by a company's board of directors to be paid to shareholders on a specified date.