A Call Option Gives the Holder

question 34

Multiple Choice

A call option gives the holder

• A)the right to buy something
• B)the right to sell something
• C)the obligation to buy something
• D)the obligation to sell something
• E)none of the above

---

Definitions:

SEC

Stands for the Securities and Exchange Commission, a U.S. federal agency responsible for regulating the securities industry and protecting investors.

Generally Accepted Accounting Principles

A set of accounting standards and procedures that are used in the preparation of financial statements in the U.S.

Owner's Equity

The residual interest in the assets of a business after deducting its liabilities, representing the owner's claim on the company's resources.

Net Loss

The amount by which total expenses exceed total revenues in a given period, indicating a company is not profitable.