Exchange-Traded Options Are Liquid Because They Are Standardized in Terms

question 60

Multiple Choice

Exchange-traded options are liquid because they are standardized in terms of:

• A)announcement dates
• B)future prices
• C)timing of the underlying asset
• D)location of the underlying asset
• E)none of the above.

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Definitions:

Supply

Refers to the total amount of goods or services that are available for purchase at any given price level.

Government Subsidy

Financial assistance given by the government to individuals, businesses, or institutions to support or encourage certain economic activities.

Supply

The total amount of a good or service available for purchase at any given price level, within a specified period.

Law of Demand

A fundamental economic principle stating that as the price of a product decreases, demand for it usually increases, and vice versa.