An Option Where the Holder Has the Right to Sell

question 51

Multiple Choice

An option where the holder has the right to sell foreign currency to the writer of the option is a

• A) forward option.
• B) put option.
• C) call option.
• D) swap option.

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Definitions:

Maturity Value

The amount payable to the holder of a financial instrument at its maturity date, including the principal and any accrued interest.

Interest

The cost paid for borrowing money, typically expressed as a percentage of the total amount loaned.

Periodic Inventory

An inventory accounting system where inventory and cost of goods sold are determined at the end of an accounting period based on a physical count.

Defaulted Note

A note or loan for which the borrower has failed to make the agreed-upon payments by the due date.