A(n) ____ is a contract that gives its holder the right to buy or sell an asset at a specified price.

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Quizplus · Accepted Answer

An option is a contract that gives the holder the right, but not the obligation, to buy or sell an asset at a predetermined price (the strike price) within a specified period of time. A futures contract, on the other hand, obligates both parties to buy or sell an asset at a predetermined price and date in the future. Zero-sum game refers to a situation in which one participant's gains are exactly balanced by another participant's losses. Strike price is the price at which an option can be exercised.

A(n) ____ Is a Contract That Gives Its Holder the Right