A contract giving the owner the right to buy or sell an asset at a fixed price for a given period of time is
A) a common stock.
B) an option.
C) a futures contract.
D) a capital investment.

Question

Quizplus · Accepted Answer

A contract giving the owner the right to buy or sell an asset at a fixed price for a given period of time is an option. Common stock refers to ownership in a corporation, a futures contract is a similar contractual arrangement but involves an obligation to buy or sell at a future date, and a capital investment typically refers to investments made with the intent of generating income or appreciation over the long term.

A Contract Giving the Owner the Right to Buy or Sell