The Opportunity, but Not the Obligation, to Buy a Security

question 98

Multiple Choice

The opportunity, but not the obligation, to buy a security within a specified period of time at a guaranteed price is

• A) A call option.
• B) Direct investing.
• C) Buying on margin.
• D) A put option.
• E) A short sale.

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Definitions:

Cost Leadership

A strategy that aims to make an organization the most cost-efficient producer in its industry.

Differentiation Strategy

A strategy that offers products that are different from the competition.

Competitive Advantage

The unique attributes or combination of attributes that allow an organization to outperform its rivals and achieve superior profitability.

Barriers To Entry

Obstacles or challenges that make it difficult for new competitors to enter a market or industry.