Option Contracts Are Binding Promises to Keep a Specific Offer

question 314

True/False

Option contracts are binding promises to keep a specific offer open to a specific party for, say, one month.

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Definitions:

Variable

An element, feature, or factor that is likely to vary or change.

Observations

Data collected or measured during an experiment or survey.

Measurements

Measurements refer to the size, length, or amount of something, determined through quantitative comparison with a standard unit.

Element

A fundamental or essential constituent of a composite entity; in contexts like chemistry, an element is a substance that cannot be broken down into simpler substances by chemical means.