What kind of camera generates an image that appears stretched out and round?

The correct answer is panoramic camera because these types of cameras are designed to capture a wide field of view, often providing a 180-degree or even 360-degree perspective. The image processing typically involved with panoramic cameras can create a visual effect where the image appears stretched out and round. This effect is a result of the lens design and the way the captured images are stitched together to provide a comprehensive view of the environment.

Panoramic cameras are particularly useful in security applications where a large area needs to be monitored without the need for multiple cameras. By utilizing a specialized lens, these cameras can effectively eliminate blind spots and provide a more immersive view of the surroundings. This characteristic makes them distinct from other camera types, which do not produce the same stretched and rounded imagery.