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Exercise of a Put Option on Futures by the Buyer

question 116

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Exercise of a put option on futures by the buyer of the option will occur if interest rates have increased.


Definitions:

Driving Test

An examination that assesses a person's ability to operate and maneuver a vehicle safely and according to the laws of the road.

Probability

The measure of the likelihood that an event will occur; expressed as a number between 0 and 1.

Random

Lacking any definite plan or order or purpose; governed by or depending on chance.

Male and Female

Categories that describe an individual’s sex, based on biological differences, within a binary framework.

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