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:

Preconscious Level

Part of the mind that contains thoughts and feelings not currently in consciousness but can be readily brought to consciousness.

Problematic Emotional Reactions

Emotional responses that are excessive or inappropriate to situations, often leading to difficulties in functioning.

Catastrophic Thinking

Unrealistic appraisals of stress that exaggerate the magnitude of one’s problems.

Albert Ellis

An influential psychologist known for developing Rational Emotive Behavior Therapy (REBT), a form of cognitive-behavioral therapy.