Ownership of a Call Option Entitles the Owner to the ________

question 1

Multiple Choice

Ownership of a call option entitles the owner to the ________ to ________ a specific stock, on or before a specific date, at a specific price.

• A) right; buy
• B) right; sell
• C) obligation; buy
• D) obligation; sell

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Definitions:

Compulsory Share Exchange

A corporate action where a company's shares are acquired in exchange for shares of the acquiring company, typically mandating that all shareholders participate.

Merge

To combine or unite multiple entities, such as companies or datasets, into one integrated whole.

Short-form Merger

A short-form merger is a type of merger that allows a parent company to absorb a subsidiary without the approval of the shareholders of the subsidiary.

Shareholder Approval

The process by which a corporation's shareholders vote on and approve certain corporate actions or decisions.