A Gain Can Be Made by the Holder of a Call

question 5

Multiple Choice

A gain can be made by the holder of a call option when the current exchange rate

• A)exceeds the exercise price.
• B)exceeds the forward price.
• C)is less than the futures price.
• D)falls to zero.

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Definitions:

Contract Breached

Occurs when one party in a contractual agreement fails to fulfill their part of the terms, leading to a breach of contract.

Reasonably Definite

Refers to language in a contract or agreement that is clear enough for the parties involved to understand their obligations and rights.

Appropriate Remedy

A suitable legal or corrective action taken to address a breach of rights or agreements.

Forklift Repair

The process of fixing or maintaining forklift vehicles, which are used to lift and move materials over short distances.