An Option Based on an Underlying Asset Such as a Building

question 292

Multiple Choice

An option based on an underlying asset such as a building or land is called a _____ option.

• A) financial
• B) liquid
• C) fixed
• D) real
• E) tangible

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Definitions:

FHA

Stands for Federal Housing Administration, a United States government agency created in 1934 to improve housing standards and conditions, and to provide an adequate home financing system through insurance of mortgages.

Long-Term Mortgages

Mortgage loans with extended repayment periods, typically ranging from 15 to 30 years, allowing for smaller monthly payments.

Supreme Court

The highest judicial body in the United States, responsible for interpreting the Constitution and reviewing laws to ensure they adhere to it.

Unconstitutional

A term referring to actions or laws that violate the constitution of a country or organization.