Question

The right to trade an investment over a certain period of time is called a(n):

Answer 1

The right to trade an investment over a certain period of time is called a c)option. It is also sometimes referred to as a compound option. This is due to the fact that the investment being made has two expiration dates (so this gives the person making the investment a given amount of time to trade an investment). It is equally called a compound option because it has two strike prices, so a set price set on the investment.