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Match Each Statement with the Correct Item Below

question 5

Multiple Choice

Match each statement with the correct item below:
-minor cuts


Definitions:

Puts

Options contracts giving the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.

Call Contract

A financial contract that gives the holder the right, but not the obligation, to buy a specified amount of an underlying asset at a predetermined price within a specified time period.

Put Contract

A financial agreement that grants the holder permission, but not the requirement, to sell a certain amount of an underlying asset at a predetermined price before a certain deadline.

Call Premium

The additional cost over the par value that an investor must pay to purchase a callable security before its maturity date.

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