​If You Have an Options Position in Which You Might

question 19

Multiple Choice

​If you have an options position in which you might be obligated to buy euros, you are a:

• A) ​call writer.
• B) ​put writer.
• C) ​put buyer.
• D) ​futures seller.

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Definitions:

Compounded Monthly

A financial mechanism where interest earnings are recalculated each month, resulting in increased earnings over time due to the effect of compounding.

Withdrawals

The act of taking money out of an investment or bank account.

Fund Sustain

The capability to maintain financial resources at a certain level or to ensure the ongoing availability of funds.

Effective Interest Rate

The real cost of borrowing, reflecting the total amount of interest paid over the term of a loan, including the effect of compounding.