The Period Over Which a Call or Put Option Exists

question 61

Multiple Choice

The period over which a call or put option exists is

• A)determined by its delivery date.
• B)determined by its expiration date.
• C)determined by whether the contract is written for a commodity or for a financial instrument.
• D)indeterminate; options contracts continue in existence until either the buyer or the seller desires to discontinue it.

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Definitions:

Goods-in-bailment

A legal term referring to the process where personal property is transferred temporarily into the care of another, known as the bailee.

Negotiable Document

An official note that commits to paying a designated amount, either immediately upon request or at a predetermined date, with the payer's name indicated on the note.

Risk of Loss

The legal and financial responsibility for damages or loss to goods, typically determined by the terms of a contract or by law.

Common-carrier Delivery

The transportation of goods or people by a commercial service available to the public under license or authority provided by a regulatory body.