The Premium on an Option Contract Is

question 423

Multiple Choice

The premium on an option contract is:

• A) The price of the underlying commodity at the time of the transaction
• B) The price at which the transaction on the underlying commodity will be carried out if and when the option is exercised
• C) The price the buyer of the option pays to the seller when entering into the options contract
• D) The price at which the two counterparties can close-out their position

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Definitions:

Electronic Surveillance

The use of electronic devices to monitor and record the activities of individuals or groups, often used for security purposes.

Principles

Fundamental truths or propositions that serve as the foundation for a system of belief, behavior, or chain of reasoning.

Surveillance State

A concept where the government extensively monitors the activities and communications of its citizens, typically through the use of technology.

Aadhaar

An unique identification number issued by the Indian government to residents, facilitating access to services and serving as proof of identity.