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The right to buy or sell stock in the stock exchange within a stipulated period is

The right to buy or sell stock in the stock exchange within a stipulated period is
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A Option
  • B Contango
  • C Backwardation
  • D Brokerage
Correct Answer: Option A
Explanation:
An option gives the holder the right, but not the obligation, to buy or sell a security at an agreed price within a specified period or on a specified date. It therefore provides flexibility to the investor in dealing with the stock.

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