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

---

Definitions:

Mutually Exclusive Investments

Investment options where the choice of one option precludes the selection of another, requiring careful analysis to determine the most beneficial choice.

Incorrect Decisions

Decision-making instances that lead to unfavorable outcomes or failures due to errors in judgement, analysis, or implementation.

Target AAR

Target Average Annual Return (AAR) is a financial goal or benchmark for the average yearly return on an investment.

Project AAR

The Average Annual Return of a project, calculated by dividing the total return by the number of years.