The Cost to Purchase an Option Contract Is Called The

question 58

Multiple Choice

The cost to purchase an option contract is called the:

• A) strike price.
• B) rights price.
• C) premium.
• D) exercise price.
• E) payoff price.

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Definitions:

Securities Exchange Act

A U.S. law enacted in 1934 to govern the trading of securities, such as stocks and bonds, in order to protect investors and maintain fair and efficient markets.

Securities Act

A U.S. federal law enacted in 1933 that governs the first sale of securities (stocks, bonds) to the public, requiring disclosure and registration.

Public Securities

Public Securities are financial instruments issued by governments or municipalities, such as bonds or notes, that are available for purchase by the public.

United Delivery

A generic term possibly referring to a delivery or courier service that operates on a uniform or nationwide basis.