The Difference Between a Put and a Call Option Is

question 15

Multiple Choice

The difference between a put and a call option is that:

• A)a put is an option to sell common stock at a specified price while a call is an option to buy common stock at a specified price.
• B)a call is an option to sell common stock at a specified price while a put is an option to buy common stock at a specified price.
• C)a call is an option to buy common stock at a specified price while a put is the option to buy preferred stock at a specified price.
• D)a call is an option to sell common stock at a specified price while a put is the option to sell preferred stock at a specified price.

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Definitions:

Medium

A means or channel through which something is communicated or expressed, such as language for ideas, or media like television and radio for information.

Rule-Of-Thumb Method

A heuristic process or guideline that simplifies decision-making without guarantees of accuracy or comprehensiveness.

IMC Budgeting

Involves allocating financial resources for Integrated Marketing Communications, ensuring a strategic mix of advertising, sales promotion, public relations, and direct marketing efforts.

Prior Sales

Historical sales data or transactions that have occurred before a specific point in time, used for analysis or forecasting.