The type of option that gives the right to buyer to buy the underlying option at specific exercise price is considered as _________?
Correct answer: C. call option
- A. European option
- B. Australian option
- C. call option
- D. put option
Explanation
A call option gives its holder the right to buy the underlying asset at the exercise price. A put option gives the right to sell, while European describes exercise timing rather than the buy-or-sell right.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
Practise Business Finance
975 free Business Finance MCQs from Management Sciences, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Management Sciences questions like this
Management Sciences is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Business Finance questions
The type of exchange members who place the buying and selling from the public are classified as __________?
The type of trading member who takes position every day and also liquidate it on the same day is classified as __________?
The orders that are transacted at best available price are classified as _________?
The put option considering interest rates and have multiple exercise dates is classified as __________?
The fixed price at which the stock is purchased from issuer by the investment banks is called ____________?
The intrinsic value of put option is ________________?