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:

Temperature

A measure of the average kinetic energy of the particles in a system, which determines how hot or cold something feels.

Deformation

involves the alteration of the shape or size of rocks and geological structures due to stress and pressure over time.

Subsidence

the gradual sinking of land or a structure, often due to natural underground processes.

Uplift

The vertical elevation of the Earth's surface due to natural causes, such as tectonic movements or volcanic activity.