Which One of the Following Provides the Option of Selling

question 72

Multiple Choice

Which one of the following provides the option of selling a stock anytime during the option period at a specified price even if the market price of the stock declines to zero?

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

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Definitions:

Ledger

A comprehensive collection of a company's financial accounts, where all transactions are recorded.

Transactions

Acts of buying, selling, transferring, or exchanging goods, services, or funds between two or more parties.

Fiscal Year

A one-year period chosen for accounting purposes, which may or may not align with the calendar year.