Buying a Call Option on a Bond Ensures an FI

question 50

True/False

Buying a call option on a bond ensures an FI that it will be able to sell the bond at a given point in time for a price at least equal to the exercise price of the option.

---

Definitions:

Reasonable Cause

A legally sufficient reason for taking a particular action, often used to justify searches, seizures, or the initiation of legal proceedings.

Physical Barriers

Obstacles or structures that physically block or impede access, movement, or visibility.

Physical Restraint

The use of physical force to limit a person's movements or freedom.

Threats of Physical Force

This term refers to any communicated intent to inflict physical harm on someone, often used as a means of coercion or intimidation.