Asked by Jessica Querol on Jun 26, 2024
Verified
An option issued by an individual that gives its owner the right to buy an asset at a fixed price on or before a given date is called a(n) :
A) American call option.
B) American put option.
C) American warrant.
D) European call option.
E) European put option.
American Call Option
A financial contract that gives the holder the right, but not the obligation, to buy a specified amount of an underlying asset at a specified price within a certain time period.
Fixed Price
A pricing strategy where the cost of goods or services is set and does not fluctuate with changes in the market or inventory costs.
Given Date
A specific date mentioned or defined within a particular context or document.
- Acquire knowledge about the particulars and appraisal of diverse options classifications (American, European) and their exercise entitlements.
- Differentiate between various financial products such as options, warrants, and convertible bonds.
Verified Answer
GH
gabriel hernandezJun 28, 2024
Final Answer :
A
Explanation :
American call options allow the holder to buy an asset at a predetermined price at any time up to the expiration date.
Learning Objectives
- Acquire knowledge about the particulars and appraisal of diverse options classifications (American, European) and their exercise entitlements.
- Differentiate between various financial products such as options, warrants, and convertible bonds.