An Option That Gives the Holder the Right to Purchase

question 76

Multiple Choice

An option that gives the holder the right to purchase an underlying security only at the end of a fixed period for a fixed price is an

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

---

Definitions:

Visible Actions

Behaviors or actions that are observable by others and can be seen as indicative of a person's character or intentions.

Learning Experience

An activity or process that leads to acquiring new knowledge, skills, attitudes, or values.

Cognitive Realms

Areas or aspects of mental processes and activities, including thinking, reasoning, and understanding.

High Expectations

The belief or hope that someone or something will achieve a high level of performance or success.