A Cash-Settled Option Is Defined as an Option That ________

question 39

Multiple Choice

A cash-settled option is defined as an option that ________

• A)requires a cash deposit upon purchase.
• B)has a foreign currency as its underlying asset.
• C)has the U.S. dollar at its underlying asset.
• D)is settled by a cash payment to the option holder upon exercise.
• E)offers the option to either deliver the underlying asset or a cash payment.

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Definitions:

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