For Puts and Calls, the Exercise Price Is Called

question 53

Multiple Choice

For puts and calls, the exercise price is called

• A) the option price.
• B) the market price.
• C) the striking price.
• D) the expected value.

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Definitions:

Competitive Market

A market structure characterized by a large number of buyers and sellers, free entry and exit, and a product for which each seller offers an identical product.

Deadweight Loss

A loss in economic efficiency that occurs when equilibrium for a good or service is not achieved or is not achievable.

Price Floor

A government-imposed limit on how low a price can be charged for a product, service, or commodity.

Competitive Price

A pricing strategy where the price of a product or service is set based on the prices of competing products or services in the market.