Jeff Opted to Exercise His August Option on August 10

question 63

Multiple Choice

Jeff opted to exercise his August option on August 10 and received $2,500 in exchange for his shares. Jeff must have owned a (an) :

• A) warrant.
• B) American call.
• C) American put.
• D) European call.

---

Definitions:

Certificate

An official document attesting to a certain fact, such as the completion of an educational course or the ownership of a financial security.

Net Profits

The sum left over once all costs, taxes, and expenses have been deducted from the total income.

Partnership Status

The legal standing of a business entity comprising two or more individuals who share management and profits.