Steve Recently Sold an Option That Requires Him to Purchase

question 4

Multiple Choice

Steve recently sold an option that requires him to purchase 100 shares of Omega stock at $40 a share should the option owner decide to exercise the option.What type of option contract did Steve sell?

• A)futures option
• B)call option
• C)put option
• D)straddle
• E)strangle

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Definitions:

Bulimia Nervosa

An eating disorder characterized by episodes of binge eating followed by behaviors to prevent weight gain, such as self-induced vomiting.

Lifetime Prevalence

The proportion of a population that at some point in their life (up to the time of assessment) has experienced a particular disorder.

DSM-5

The Diagnostic and Statistical Manual of Mental Disorders, fifth edition, which is a comprehensive classification of officially recognized psychiatric disorders, published by the American Psychiatric Association.

Binge-Eating Disorder

A severe, life-threatening, and treatable eating disorder characterized by recurrent episodes of eating large quantities of food (often very quickly and to the point of discomfort).