An Option Is a Type of Contract Between a Buyer

question 55

Multiple Choice

An option is a type of contract between a buyer and a writer wherein one grants the other the __ to buy or sell a specific asset at a specific price within a specified date.

• A) right
• B) obligation
• C) tax status
• D) power of attorney

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Definitions:

Ace of Hearts

A playing card in the deck of standard playing cards, distinguished by a single heart symbol and an ace rank.

Face Card

In a standard deck of playing cards, it refers to any jack, queen, or king, each of which has a picture of a face.

Ace

In card games, an ace refers to a playing card that typically ranks the highest in its suit.

Lowest 4%

Refers to the bottom 4% of data points in a distribution, highlighting the far left end of the data spectrum or values significantly below the median.