A Call Option Provides an Options Holder

question 108

Multiple Choice

A call option provides an options holder

• A) the obligation to buy foreign currency at a specific price.
• B) the obligation to sell foreign currency at a specific price.
• C) the right to buy foreign currency at a specific price.
• D) the right to sell foreign currency at a specific price.

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Definitions:

Demand

The desire and ability of consumers to purchase goods or services at a given price, representing the quantity of a product that people are willing and able to buy.

Supply Curve

A graph showing the relationship between the price of a good and the quantity of that good that suppliers are willing to produce and sell.

Kitchen Cabinets

Furniture installed in many kitchens for storage of food, cooking equipment, and often silverware and dishes.

Wood

Wood is a hard, fibrous material derived from trees and used in construction, manufacturing, and as a fuel source among other purposes.