An Option That Grants the Right,but Not the Obligation,to Sell

question 61

Multiple Choice

An option that grants the right,but not the obligation,to sell shares of the underlying asset on a particular date at a specified price is called:

• A)either an American or a European option.
• B)an American put.
• C)an American call.
• D)a European call.
• E)a European put.

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Definitions:

Collateral Heirs

Individuals entitled to inherit a deceased person's estate in the absence of direct descendants or other primary beneficiaries, often including distant relatives.

Statutory Formalities

The specific procedures or requirements mandated by law for certain actions to be legally valid, such as signings, notifications, or registrations.

Holographic

Pertaining to holograms, typically used to describe a three-dimensional image formed by the interference of light beams from a laser or other coherent light source.

Abatement

A reduction, decrease, or removal of something, especially of a nuisance or environmental hazard.