Steve Recently Sold an Option That Requires Him to Purchase

question 4

Multiple Choice

Steve recently sold an option that requires him to purchase 100 shares of Omega stock at $40 a share should the option owner decide to exercise the option.What type of option contract did Steve sell?

• A)futures option
• B)call option
• C)put option
• D)straddle
• E)strangle

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Definitions:

Psychological Dependence

A condition in which an individual feels a compulsive need to continue using a substance or engaging in a behavior due to emotional or psychological needs.

Herbal Supplements

Products made from plants or plant extracts intended for dietary or medicinal purposes, often used to improve health or treat conditions naturally.

Nicotine

A potent chemical found in tobacco plants that acts as a stimulant in small doses but can be harmful, leading to addiction and various health issues.

Stimulant

An agent that elevates activity in the body's physiological or nervous functions.