If You Buy a Call Option on Treasury Futures at 115,and

question 80

Multiple Choice

If you buy a call option on Treasury futures at 115,and at expiration the market price is 110,the ________ will ________ exercised.

• A)call;be
• B)put;be
• C)call;not be
• D)put;not be

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Definitions:

Dividend

A portion of a company's earnings distributed to its shareholders, usually in cash or as shares.

Investment Return

The gain or loss on an investment over a specified period, including income and changes in value, expressed as a percentage of the investment's cost.

Dividend Payment

Distribution of a portion of a company's earnings to its shareholders, typically in the form of cash or additional stock.

Employee Stock Options

A type of compensation given to employees, offering the right to purchase company stock at a specific price within a set period.