Options Series: Session 1 Assessment

A ❌ is a share in the ownership of a company that represents a claim on the company's ❌ and earnings. As you acquire more, your ownership stake in the company becomes ❌.

The ❌ refers to the collection of markets and exchanges where the issuing and trading of equities
(stocks of publicly held companies), bonds and other sorts of securities takes place, either through formal exchanges or over-the-counter markets.

An option is a ❌ giving the buyer the ❌, but not the ❌, to buy or sell an underlying asset (a stock or
index) at a specific price on or before a certain date. An option is a derivative. That is, its value is derived from something
else. In the case of a stock option, its value is based on the underlying stock (equity). An option is a security, just like a
stock or bond, and constitutes a binding contract with strictly defined terms and properties.