The Owner of a Call Option on a Futures Contract

question 14

True/False

The owner of a call option on a futures contract has the obligation to buy the futures contract at a predetermined strike price during a specified time period.

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Definitions:

Investment Account

An account held at a financial institution that contains investments like stocks, bonds, mutual funds, and ETFs, potentially helping the owner achieve long-term financial goals.

Dividends

Payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders.

Subsidiary

A company controlled by another company (the parent company) through ownership of more than 50% of its voting stock.

Goodwill

An intangible asset that arises when a buyer acquires an existing business and pays more than the fair value of the identifiable net assets.