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You Purchase an Option from AerOmega, a European Airplane Manufacturer

Question 1

Multiple Choice

You purchase an option from AerOmega, a European airplane manufacturer. The option is in relation to stock that you own in AerOmega and states that, at your option, you may sell your shares back to AerOmega for €250 per share. The option expires at the end of the year. What kind of option is this?


A) Cash flow option
B) Callable option
C) Puttable option
D) Fair value option
E) None of the above

Correct Answer:

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