Contract which gives rights to holders to sell or buy asset at specific time period rather than giving obligation is classified as
A. option
B. contract
C. obligatory contract
D. non-obligatory contract
Answer: Option A
Solution(By Examveda Team)
Contract which gives rights to holders to sell or buy asset at specific time period rather than giving obligation is classified as option. An options contract is an agreement between a buyer and seller that gives the purchaser of the option the right to buy or sell a particular asset at a later date at an agreed upon price. Options contracts are often used in securities, commodities, and real estate transactions.Related Questions on International Finance and Treasury
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