In an Option Contract, If the Right Is to Buy

question 15

True/False

In an option contract, if the right is to buy a commodity, the option is known as a call.

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Definitions:

Equity Method

An accounting technique used to record investments in associate companies where the investor has significant influence but not full control.

Investor's Share

The portion of profits or losses attributed to an investor, based on their ownership percentage in an investment.

Other-Than-Temporary

A classification for a decline in the value of an investment or asset when the loss is not expected to be recovered in the short term, often requiring the asset to be written down to its reduced value permanently.

Unrealized Losses

Losses that result from holding on to an asset that has decreased in price but has not yet been sold by the owner.