Which of the Following Is an Example of an Option

question 5

Multiple Choice

Which of the following is an example of an option class?

• A) All calls on a certain stock
• B) All calls with a particular strike price on a certain stock
• C) All calls with a particular time to maturity on a certain stock
• D) All calls with a particular time to maturity and strike price on a certain stock

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Definitions:

Drawee Bank

The bank upon which a check is drawn, responsible for paying the check amount to the payee or bearer.

Liability

A legal obligation or responsibility, often in the form of debt or duty to compensate for loss or damage caused.

Improper Refusal

A situation where a party unjustly rejects a contract offer or fails to perform an action required by the agreement.

Checking Account

A bank account that allows for both deposits and withdrawals and is primarily used for daily transactions.