When a Company Writes a Call Option on New Stock

question 52

Multiple Choice

When a company writes a call option on new stock in the company, it is called a ________.

• A) convertible bond
• B) put option
• C) stock option
• D) warrant

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Definitions:

B2C

Business-to-Consumer, referring to the process of selling products and services directly to consumers who are the end-users.

C2B

Consumer to Business, a business model where consumers (individuals) create value or products that businesses purchase, consume or use, essentially reversing the traditional business-to-consumer (B2C) model.

C2C

Consumer-to-Consumer, a business model that facilitates the transaction of products or services between customers, typically using the internet.

BBC

The British Broadcasting Corporation, a public service broadcaster providing television, radio, and online services in the United Kingdom and worldwide.