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      Question

      Which financial instrument provides the right, but not

      the obligation, to buy or sell an asset at a specified price?
      A Bond Correct Answer Incorrect Answer
      B Stock Correct Answer Incorrect Answer
      C Option Correct Answer Incorrect Answer
      D Futures contract Correct Answer Incorrect Answer
      E Certificate of deposit Correct Answer Incorrect Answer

      Solution

      An option provides the right, but not the obligation, to buy or sell an asset at a specified price within a certain period.

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