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If an Investor Wants to Acquire the Right to Buy

question 21

True/False

If an investor wants to acquire the right to buy or sell an asset, but not the obligation to do it, the best instrument is an option rather than a futures contract.


Definitions:

Pyrotechnics

The science and craft of creating fireworks and other explosive effects for entertainment, ceremonial, or signaling purposes.

Pyrotechnics

The art of making or displaying fireworks, sometimes used in entertainment or celebrations.

Trumpet

A brass wind instrument with a flared bell and three buttons (valves) that is commonly used in classical and jazz music.

Pyrotechnics

The art, craft, or science of making and using fireworks or related explosive devices for entertainment, military, or industrial purposes.

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