When a Put Futures Is Exercised, the Holder of the Put

question 5

Multiple Choice

When a put futures is exercised, the holder of the put acquires: choose one)

• A) A long position in the futures contract
• B) A short position in the futures contract
• C) A long position in the underlying asset
• D) None of the above

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Definitions:

Protein Catalyst

Enzymes that significantly speed up the rate of virtually all of the chemical reactions that take place within cells.

Chemical Reaction

A process that involves rearrangement of the molecular or ionic structure of substances, not involving a change in physical state.

ATP

Adenosine Triphosphate, a molecule that stores and transfers energy within cells, enabling metabolic processes.

Synthesized

Produced artificially by chemical or biological processes.