The correct answer is: B. long-term options
A long-term equity anticipation security (LEAPS) is a type of option contract that gives the buyer the right to purchase or sell a specified amount of an underlying security at a specified price on or before a specified date in the future. LEAPS are typically used by investors who believe that the underlying security will appreciate in value over the long term.
Short-term options, on the other hand, are options contracts that expire within one year. Short-term options are typically used by investors who believe that the underlying security will move in a certain direction in the near future.
Short money options are not a type of option contract.
Yearly call is not a type of option contract.
Here is a table that summarizes the key differences between LEAPS and short-term options:
| Feature | LEAPS | Short-term options |
|—|—|—|
| Expiration date | At least one year | Within one year |
| Use case | To invest in the long-term appreciation of an underlying security | To speculate on the near-term movement of an underlying security |
| Risk | Higher | Lower |
| Reward | Higher | Lower |
I hope this helps! Let me know if you have any other questions.