________ Grants the Buyer the Right to Sell One Designated

question 1

Multiple Choice

________ grants the buyer the right to sell one designated futures contract to the writer at the exercise price. That is, the option buyer has the right to acquire a short position in the designated futures contract.

• A) A put option on a futures contract
• B) A call option on a futures contract
• C) A put option on an option contract
• D) A call option on an option contract

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Definitions:

Utility Function

A mathematical representation of how consumer preferences over goods or services translate into utility or satisfaction levels.

Whisky Consumption

The act of drinking whisky, which can be measured by volume consumed over a given period.

Gallons

A measure of volume in the US customary units and the British imperial system, used primarily for fuel and liquid goods.

Whisky Consumption

The action or practice of drinking whisky, which can be analyzed for its economic impacts, trends, and consumer preferences.