An Option That Gives the Owner the Right to Sell

question 4

Multiple Choice

An option that gives the owner the right to sell a financial instrument at the exercise price within a specified period of time is a(n) ________.

• A) call option
• B) put option
• C) American option
• D) European option

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Definitions:

Language Development

The method through which young children acquire the ability to comprehend and express language in their early years.

Perceptual Development

The gradual development of the sensory systems and the interpretation of sensory information throughout childhood.

Formal Operations

A stage in Piaget's theory of cognitive development, typically starting around age 12, where individuals develop the ability to think abstractly, logically, and systematically.

Concrete Operations

The stage in Piaget's theory of cognitive development in which children aged about 7 to 12 years become capable of logical thought processes but are not yet adept at abstract reasoning.