The Allocations of Land Grants to Farmers and to Railroad

question 117

Multiple Choice

The allocations of land grants to farmers and to railroad companies by Alexander Hamilton to encourage western settlement are early examples of

• A)contracting.
• B)lending.
• C)deregulation.
• D)subsidies.
• E)monetary policy.

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Definitions:

Put Option Contracts

Financial contracts giving the owner the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.

Exercise Price

Also known as the strike price, it’s the specified price at which an option contract can be exercised, determining the price at which the underlying security can be bought or sold.

Option Price

The premium that must be paid by the buyer to the seller to acquire the rights that the option confers, without the obligation to buy (call) or sell (put) the underlying asset.