In an Option Contract, If the Right Is to Make

question 14

Multiple Choice

In an option contract, if the right is to make a sale, the option is known as a ________.

• A) spread eagle
• B) straddle
• C) call
• D) put

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Definitions:

Total Benefit

The complete gain or satisfaction obtained from consuming a product or engaging in an activity, quantified by willingness to pay or perceived utility.

Construction Project

A comprehensive undertaking to build, erect, or assemble infrastructure or buildings, involving planning, design, and management.

Public Choice Theorists

Economists who apply the theories and methods of economics to the analysis of political behavior, focusing on the behavior of public officials and voters.

Market System Failure

A situation where the allocation of goods and services by a free market is not efficient, often leading to negative outcomes like pollution or public goods being underprovided.