The Amount Paid for an Option Is the

question 48

Multiple Choice

The amount paid for an option is the

• A)strike price.
• B)premium.
• C)discount.
• D)yield.

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Definitions:

Subsidizing Production

Financial assistance provided by the government or other institutions to reduce the cost of producing goods or services and encourage increased output.

Negative Externalities

A situation where a third party suffers from a decision or action made by others, typically not reflected in the market price.

Positive Externalities

Benefits enjoyed by third-party individuals or the society at large, which result from an economic activity but are not reflected in the market prices.

Negative Externality

An external effect of a product or activity that imposes a negative impact on a third party or the environment.