A Call Gives the Owner the Right

question 43

Multiple Choice

A call gives the owner the right:

• A) and the obligation to buy an asset at a given price.
• B) and the obligation to sell an asset at a given price.
• C) but not the obligation to buy an asset at a given price.
• D) but not the obligation to sell an asset at a given price.

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Definitions:

Z-score

A statistical measure that quantifies the distance (in standard deviations) a data point is from the mean of a data set.

Standard Normal Distribution

A probability distribution with a mean of 0 and a standard deviation of 1.

Bottom

In a general context, the term can refer to the lowest part or point of something; however, without a specific context, its definition can vary widely.

Z-scores

An indicator that shows the number of standard deviations a data point is away from the average.