An Option Is a Contract That Always

question 99

Multiple Choice

An option is a contract that always

• A) gives the owner the right,but not the obligation,to buy shares of a stock at a specified price within the time limits of the contract.
• B) gives the owner the right,but not the obligation,to sell shares of a stock at a specified price within the time limits of the contract.
• C) states that the seller agrees to provide a particular good to the buyer on a specified future date at an agreed-upon price.
• D) gives the owner the right,but not the obligation,to buy or sell shares of a stock at a specified price within the time limits of the contract.

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Definitions:

Bipolar Disorder

A psychiatric disorder marked by significant fluctuations in mood, alternating between periods of intense elation (mania or hypomania) and severe depression.

Mood Disorder

A psychological disorder characterized by the elevation or lowering of a person's mood, such as depression or bipolar disorder.

Not Criminally Responsible

A legal defense asserting that an individual was unable to appreciate the nature and quality of an act or distinguish right from wrong due to a mental disorder at the time of committing the act.

Mental Disorder

A health condition characterized by alterations in thinking, mood, or behavior associated with distress and/or impaired functioning.