Which of the Following Types of Financial Instruments Is a Contract

question 35

Multiple Choice

Which of the following types of financial instruments is a contract between a buyer and a seller in which the buyer has the right (but not the obligation) to buy an agreed quantity of a specified commodity or financial instrument at a certain time for a certain price.

• A)Put option.
• B)Call option.
• C)Hedge.
• D)Collateralized purchase option.

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Definitions:

Actor-observer Bias

The tendency to attribute one's own actions to external factors while attributing others' actions to their internal characteristics.

Situational Influences

External factors present in an individual's environment that impact behavior, decisions, and perceptions.

Situational Factors

Refers to external influences that affect an individual's behavior, decision-making, and ability to perform in various situations.

Actor

A person who performs in plays, movies, or television shows.