An Option That Grants the Right,but Not the Obligation,to Sell

question 14

Multiple Choice

An option that grants the right,but not the obligation,to sell shares of the underlying asset on a particular date at a specified price is called:

• A) either an American or a European option.
• B) an American call.
• C) an American put.
• D) a European put.
• E) a European call.

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Definitions:

Catatonic Symptoms

Behaviors associated with a severe form of schizophrenia characterized by stupor, rigidity, posturing, or agitation, not influenced by the external environment.

Delusional Behavior

Actions that are influenced by beliefs or ideas that are firmly held despite being contradicted by reality or rational argument, typically seen in various psychological disorders.

Token Economy

A behavioral modification system using tokens as reinforcement for desired behaviors, which can be exchanged for privileges or treats.

Unethical and Illegal

Activities or behaviors that are both morally wrong and against the law.