A contract between two parties to either purchase or sell shares at a fixed price is referred to as a:
A)stock dividend.
B)stock option.
C)contract option.
D)employment option.

Question

Quizplus · Accepted Answer

A contract between two parties to purchase or sell shares at a fixed price is referred to as a stock option. Stock dividends are payments made by a corporation to its shareholders, and a contract option and employment option are not relevant to the given scenario.

A Contract Between Two Parties to Either Purchase or Sell