The most common type of an option is known as a financial option which is the right to purchase stock at a fixed price for a specific period of time.

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This statement is true. A financial option is a contract that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a predetermined price within a specified time period. The most common type of financial option is a stock option, which gives the holder the right to purchase (or sell) shares of stock at a fixed price (the strike price) for a specific period of time.

The Most Common Type of an Option Is Known as a Financial