Q640
A type of contract in which contract holder has right to sell an asset at specific period for predetermining price is classified as
A.
option
AnswerB.
written contract
C.
determined contract
D.
featured contract
Answer: Option A
Solution
Answer: Option A
Solution:
A type of contract in which contract holder has right to sell an asset at specific period for predetermining price is classified as option. Options are financial instruments that are derivatives or based on underlying securities such as stocks. An options contract offers the buyer the opportunity to buy or sell depending on the type of contract they hold the underlying asset.