If You Want the Right, but Not the Obligation, to Buy

question 11

Multiple Choice

If you want the right, but not the obligation, to buy a stock at a specified price you should:

• A)buy a call.
• B)sell a call.
• C)buy a put.
• D)sell a put.
• E)either sell a call or buy a put.

Grasp the concept of human capital and its creation through education and training.

Recognize market imperfections and their impact on wage differentials within occupations.

Comprehend the role of investments in education on future earnings and productivity.

Acknowledge the influence of compensating differentials and labor mobility on wage variations.

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Definitions:

Sales Tax

A consumption tax imposed by the government on the sale of goods and services, typically calculated as a percentage of the purchase price.

Percentage

A rate, number, or amount in each hundred, often used to express a proportion of a whole.

Algebraic Expression

A mathematical phrase that can contain numbers, operators, and variables, but no equal sign.

Exponent Laws

Mathematical rules that describe operations on powers, including multiplication, division, and raising powers to powers.