Task: Class Definition Understanding (ontology: Business_Finance/Financial_Industry_Business_Ontology)

Which of the following definitions best describes 'long-term equity anticipation security'?

A. equity option that allows the holder to buy or sell shares of stock with expiration dates that are longer than one year, and typically up to three years from issue
B. option with an established profit cap or cap price
C. option giving the buyer (holder) the right, but not the obligation, to buy or sell (depending on whether it is a call or a put) a bond at a certain price on or before a specified date
D. call option in which the seller (investor) owns an equivalent amount of the underlying security

Answer: equity option that allows the holder to buy or sell shares of stock with expiration dates that are longer than one year, and typically up to three years from issue