The Price That the Buyer of a Put Option Pays

question 43

Multiple Choice

The price that the buyer of a put option pays to acquire the option is called the

• A) strike price.
• B) exercise price.
• C) execution price.
• D) acquisition price.
• E) premium.

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Definitions:

Trans-Decalin

A specific configuration of decalin (a bicyclic compound) where the hydrogen atoms at the bridgehead positions are on opposite sides.

Stable Conformation

Stable conformation describes the most energetically favorable spatial arrangement of atoms in a molecule, minimizing strain and maximizing stability.

Spiro [4.4]Nonane

A type of spiro compound composed of two cyclobutane rings sharing a single carbon atom, named for its nine total carbon atoms within the structure.

Newman Projection

A way to visualize the conformation of a chemical compound by looking down the bond between two carbon atoms, showing how substituents are spatially arranged.