Which One of the Following Provides the Option of Selling

question 56

Multiple Choice

Which one of the following provides the option of selling a share anytime during the option period at a specified price even if the market price of the share declines to zero?

• A)American call.
• B)European call.
• C)American put.
• D)European put.
• E)Either an American or a European put.

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Definitions:

Stock Options

Financial instruments granting the holder the right to buy or sell stock at a specified price before a certain date.

Net Income

Net income is the total profit of a company after subtracting all expenses, taxes, and costs from its total revenue.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation, with voting rights at shareholder meetings.