An Option Is a Security That Is Neither Debt nor Equity

question 128

True/False

An option is a security that is neither debt nor equity but derives its value from an underlying asset that is often another security.

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Definitions:

Bowed Legs

A condition characterized by a noticeable bending outward of the legs from the knee down, which can lead to walking difficulties.

Immediate Memory

The ability to hold a small amount of information in mind in an active, readily available state for a short period.

Hospital

A healthcare institution providing patient treatment with specialized medical and nursing staff and medical equipment.

Abdominal Palpation

A physical examination technique where the abdomen is gently pressed to check for pain, tenderness, or abnormalities in the organs.