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x Company Limited purchased an option entitling it to purchase 2,000 shares in y company at a price of 5$ per share at any time
x Company Limited purchased an option entitling it to purchase 2,000 shares in y company at a price of 5$ per share at any time during the next three months. The derivative financial instrument in this transaction is:
1. OPTION price at 5 $
2. The price of shares in y company after 3 months.
3. Shares in y Company.
4. Shares in x Company.
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