A ________ Option Is an Option to Purchase a Specified

question 76

Multiple Choice

A ________ option is an option to purchase a specified number of shares of a stock on or before some future date at a specified price, whereas a ________ option is an option to sell a specified number of shares of a stock on or before some future date at a specified price. ________ are purchased if the stock price is expected to fall.

• A) put; call; Puts
• B) call; put; Puts
• C) put; call; Calls
• D) call; put; Calls

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Definitions:

Abstract Language

Language that expresses ideas and concepts in a general and less tangible manner, as opposed to concrete language that describes specific, observable entities.

White Space

The unmarked areas of a page or screen that help improve readability and design by breaking up text and elements.

Creative Thinking

The ability to think in novel and unconventional ways to find solutions to problems or create new ideas.

Genetic Trait

A characteristic that is inherited from one's parents and can be passed on to offspring.