The ________ Is Fixed for the Life of the Option

question 54

Multiple Choice

The ________ is fixed for the life of the option. All other factors equal, the lower the strike price, the ________ the price for a call option. For put options, the ________ the exercise price, the higher the option price.

• A) strike price; lower; higher
• B) exercise price; higher; lower
• C) strike price; higher; higher
• D) market price; lower; lower

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Definitions:

Nonexempt Assets

Assets that can be seized by creditors under bankruptcy proceedings, as opposed to those protected or exempt.

Involuntary Petition

A legal process initiated by creditors requesting the bankruptcy court to declare a debtor bankrupt, typically utilized when the debtor is not paying outstanding debts.

Chapter 7

A provision of the U.S. Bankruptcy Code that involves the liquidation of a debtor's non-exempt assets to pay off creditors.

Consumer Debt

Consumer debt is a type of financial obligation that arises from the purchase of goods that are used for personal, family, or household purposes.