Which of the Following Statements About Option Contracts Is Correct

question 41

Multiple Choice

Which of the following statements about option contracts is correct?

• A) Option contracts can create a legal right to buy a commodity.
• B) Option contracts can create a legal right to sell a financial asset.
• C) The option holder has the right to exercise the option.
• D) All of the above are correct.

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Definitions:

Fences

Structures built to enclose or separate areas, typically made out of wood, metal, or other materials, serving various purposes such as privacy, security, or decorative.

Interest

The cost of borrowing money, expressed as a percentage, charged by a lender to a borrower for the use of assets.

Finance Construction

The act of providing or securing funds for the construction of buildings or infrastructure.

Office Building

A structure designed for administrative or office-based activities, housing employees and equipment necessary for management functions.