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Question

What does the greenshoe option refer to in an IPO underwriting agreement?

A The right of the issuer to buy back shares from investors

B The option for investors to purchase additional shares at a discounted price

C The underwriter's right to sell more shares than initially planned in case of high demand

D The option for the underwriter to delay the IPO

E The right of existing shareholders to participate in the IPO at a premium price

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