Foreign Currency Options Contracts That Give the Buyer the Right

question 25

Multiple Choice

Foreign currency options contracts that give the buyer the right to sell are called:

• A) Call options.
• B) Selling rights.
• C) Put options.
• D) Strike rights.

---

Definitions:

P/E Ratio

The Price-to-Earnings ratio compares a company's current share price to its per-share earnings, providing insight into how much investors are willing to pay per dollar of earnings.

Market-To-Book Ratio

A ratio used to compare a company's market value to its book value, indicating investors' expectations of the company's future growth prospects.

Earnings Per Share

A company's net profit divided by the number of its outstanding shares, indicating the profitability of a company on a per-share basis.

Times-Interest-Earned Ratio

A financial metric that measures a company's ability to meet its debt obligations based on its current earnings.