You Owned an Option That Expires on February 21

question 13

Multiple Choice

You owned an option that expires on February 21. You exercised the option on February 3. The option must have been a(n) :

• A) call option.
• B) put option.
• C) European option.
• D) American option.
• E) Insufficient information.

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Definitions:

Conjugate Base

The species that remains after an acid has donated a proton, often able to react by accepting a proton.

pKa Values

A quantitative measure that indicates the strength of an acid; it's the logarithmic constant of a compound's dissociation in water.

Acids

Substances that donate protons (H+) in a chemical reaction and have a pH less than 7 in an aqueous solution.

pH

A measure of the acidity or alkalinity of a solution, on a scale in which 7 is neutral, lower values are more acidic, and higher values are more alkaline.