An Option That Gives the Option Buyer the Right to Sell

question 56

Multiple Choice

An option that gives the option buyer the right to sell the commodity or financial instrument specified in the contact at the exercise price is called:

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

---

Definitions:

Stock Purchase Plan

A program offered by a company allowing employees to buy shares of the company's stock, often at a discount, as part of their benefits package.

Performance Equation

A formula designed to assess the efficiency and effectiveness of an individual's or organization's performance based on various parameters.

Core Phases

The fundamental stages or steps in a process, project, or lifecycle that are critical for successful completion.

Financial Responsibility

The obligation to manage money, assets, or resources in an efficient, ethical, and sustainable manner.