If You Want the Right, but Not the Obligation, to Buy

question 11

Multiple Choice

If you want the right, but not the obligation, to buy a stock at a specified price you should:

• A)buy a call.
• B)sell a call.
• C)buy a put.
• D)sell a put.
• E)either sell a call or buy a put.

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Definitions:

Control Circuit

An electrical circuit designed to control the operation of mechanical devices or systems.

Contactor Unit

An electromechanical switch used for switching an electrical power circuit, often found in control and automation systems.

Overload Unit

A protective device used in electrical circuits to prevent motors and other devices from operating at currents that are higher than their safe operating limits.

Electric Motor

A device that converts electrical energy into mechanical energy.