An Option That Gives the Owner the Right to Buy

question 32

Multiple Choice

An option that gives the owner the right to buy a financial instrument at the exercise price within a specified period of time is a(n) ________.

• A) call option
• B) put option
• C) American option
• D) European option

---

Definitions:

Patent

A legal document granted by the government giving an inventor exclusive rights to manufacture, use, or sell an invention for a certain number of years.

Primary Demand

The total demand for an entire product category rather than for a specific brand.

Selective Demand

Selective demand is the demand for a specific brand or product within a category, rather than the category as a whole, often influenced by marketing and brand differentiation.

Multibranding

A strategy involving the marketing of multiple brands by a single company in the same market, enabling the diversification of offerings to appeal to different consumer segments.