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.
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. A common stock represents ownership in a company, a futures contract is an agreement to buy or sell a commodity or financial instrument at a predetermined price on a future date, and a capital investment is the purchase of an asset with the expectation of future returns.

A Contract Giving the Owner the Right to Buy or Sell