A contract giving the owner the right but not the obligation to trade an asset is a financial:
AOrnament
BOption
COpening
DOrdinance
Answer & Solution
Correct answer: B. Option
1. The holder may act or may decline.
2. The price and date are fixed in advance.
3. That contract is a financial option.
_Source: OpenStax Principles of Finance 2e, Chapter 20, Risk Management and the Financial Manager._
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