Which One of the Following Statements Correctly Describes Your Situation

question 257

Multiple Choice

Which one of the following statements correctly describes your situation as the owner of an American call option?

• A) You are obligated to buy at a set price at any time up to and including the expiration date.
• B) You have the right to sell at a set price at any time up to and including the expiration date.
• C) You have the right to buy at a set price only on the expiration date.
• D) You are obligated to sell at a set price if the option is exercised.
• E) You have the right to buy at a set price at any time up to and including the expiration date.

---

Definitions:

Coefficient Of Correlation

A statistical measure that calculates the strength and direction of the linear relationship between two variables, represented by values between -1 and 1.

Coefficient Of Determination

A measure used in statistical analysis that assesses the goodness of fit of a model, representing the proportion of variance in the dependent variable that is predictable from the independent variable(s).

Regression Analysis

A statistical method for modeling the relationship between a dependent variable and one or more independent variables.

Independent Variables

Variables in an experiment or model that are manipulated or controlled by the researcher to investigate their effect on dependent variables.