A Financial Contract That Provides Its Owner with the Right,but

question 105

Multiple Choice

A financial contract that provides its owner with the right,but not the obligation,to buy or sell a specified asset at an agreed-upon price on or before a given future date is called a(n) ________ contract.

• A)option
• B)futures
• C)forward
• D)swap
• E)straddle

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Definitions:

Salesperson

An individual who sells goods or services directly to customers for a company.

Duress

Compulsion, force, or pressure to perform an act against one's will.

Wrongful Act

Any action that infringes on the rights of another or is illegal, leading to potential legal liability.

Tort

A wrongful act in a civil context that results in harm or loss for the affected individual, thereby establishing legal accountability for the one committing the act.