A _____ Is a Derivative Security That Gives the Owner

question 57

Multiple Choice

A _____ is a derivative security that gives the owner the right,but not the obligation,to sell an asset at a fixed price for a specified period of time.

• A) futures contract
• B) call option
• C) put option
• D) swap
• E) forward contract

---

Definitions:

Plant Assets

Long-term tangible assets used in the production of goods and services, such as buildings, machinery, and equipment.

Cash Flows

The net amount of cash and cash equivalents being transferred into and out of a business.

Operating Activities

Activities that relate to the primary operations of the company, including cash flows from selling goods and services.

Indirect Method

A way of presenting the cash flow statement where net income is adjusted for changes in balance sheet items to calculate cash flow from operating activities.