A Minor's Freedom from Liability Is Limited to Contract.Explain

question 45

Essay

A minor's freedom from liability is limited to contract.Explain.

---

Definitions:

Covered Option

Occurs when a trader writes (sells) an option while having the underlying position to cover the position in the event that the option is exercised.

Naked Option

A risky investment strategy involving the selling of options contracts without owning the underlying asset or having a covering position.

Dividend Policy

A company's strategy or policy in deciding the size and pattern of dividend payments to its shareholders.

Payout Policy

The strategy a company uses to decide how much money it will distribute to shareholders through dividends or stock buybacks.