An Agreement That Gives the Owner the Right, but Not

question 144

Multiple Choice

An agreement that gives the owner the right, but not the obligation, to buy or sell a specific asset at a specific price for a set period of time is called a(n) _______________ contract.

• A) Option.
• B) Forward.
• C) Futures.
• D) Swap.
• E) Spot.

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Definitions:

Optimal Cost

The lowest possible cost at which a particular set of goods or services can be produced or acquired, taking into consideration factors such as efficiency and resource allocation.

Double-subscripted Variables

Variables in mathematical modeling that are indexed by two subscripts, often used to represent elements in matrices or two-dimensional arrays.

Price Range

The difference between the highest and lowest prices at which a commodity or service is traded over a particular period of time.

Platinum Suite

A premium offering or tier of services, typically in software, hospitality, or events, characterized by exclusive features or luxury amenities.