An Option Is a Contract Which Gives Its Holder the Right

question 101

True/False

An option is a contract which gives its holder the right to buy (sell)an asset at a predetermined price within a specified period of time.

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Definitions:

FOB Shipping Point

This term refers to a delivery method where the buyer assumes ownership and responsibility for goods the moment they leave the seller's premises.

Ending Inventory

The total value of all inventory a company has in stock at the end of a financial period.

Physical Count

The process of manually counting and verifying the quantities of inventory on hand at a specific point in time.

FOB Destination

A shipping term where the seller bears the freight charges and maintains ownership until the goods are delivered to the buyer's location.