An Option That Grants the Right,but Not the Obligation,to Sell

question 20

Multiple Choice

An option that grants the right,but not the obligation,to sell shares of the underlying asset during a particular time period at a specified price is called:

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

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Definitions:

Commerce Clause

A provision in the United States Constitution that grants Congress the power to regulate trade between states and with foreign countries.

Privileges and Immunities Clause

Provisions in the U.S. Constitution and state constitutions protecting citizens from discriminatory treatment by other states.

Full Faith and Credit Clause

A clause in the United States Constitution requiring each state to recognize the public acts, records, and judicial proceedings of all other states.

Fifth Amendment

An amendment to the U.S. Constitution that provides several rights relevant to both criminal and civil legal proceedings.