Credits

question 197

Multiple Choice

Credits

• A) decrease both assets and liabilities.
• B) decrease assets and increase liabilities.
• C) increase both assets and liabilities.
• D) increase assets and decrease liabilities.

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Definitions:

Call Premium

The additional amount above the exercise price that one must pay to purchase a call option.

Put Premium

The price that a put option buyer pays to acquire the right to sell a specified quantity of an asset at a predetermined price before the option expires.

Exotic Options

Non-standard options that have more complex features than common American or European options, often including different pay-off structures or the ability to trade on more unusual underlying assets.

Over-The-Counter Market

A decentralized market, without a central physical location, where participants trade securities directly between two parties.