WAEC Commerce 2020 Objective — Question 25
Question 25 of 50 from the West African Examinations Council (WAEC) Commerce 2020 Objective paper, with the correct answer and a full explanation.
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The right to buy or sell stock in the stock exchange with a stipulated period is
- A. an optionCorrect
- B. contango
- C. backwardation
- D. brokerage
Explanation
An option is a contract which allows the holder (of the contract) the right to buy or sell assets in the stock exchange at a specified price and on a specified date or period of time.
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