The ________ Side of an Options Contract Has the Option

question 17

Multiple Choice

The ________ side of an options contract has the option to exercise,while the ________ side has an obligation to fulfill the contract.

• A) long, long
• B) short, long
• C) long, short
• D) short, short
• E) short, other

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Definitions:

Domestic Opportunity Cost

The cost of forgoing the next best alternative use of a country's own resources.

Comparative Advantage

The principle that countries or entities should produce goods and services where they have a lower opportunity cost compared to others.

Domestic Opportunity Cost

The cost of forgoing the next best alternative when choosing to produce a good or service domestically.