A Homeowner Can Refinance the Mortgage Loan on the House

question 2

Multiple Choice

A homeowner can refinance the mortgage loan on the house at a lower rate when the interest rates go down.The right to refinance at a lower rate is a(n) :

• A)Put option
• B)Call option
• C)Option to expand
• D)It is not an option

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Definitions:

Parabola

A specific type of curve on a graph, represented by a quadratic function, characterized by its symmetric shape which can open upwards or downwards.

Graph

A visual representation of data or mathematical functions typically consisting of points on a coordinate plane.

Standard Form

A way of writing numbers, particularly very large or very small numbers, using powers of ten; also refers to a canonical form of equations in mathematics.

Vertex

A point where two or more curves, edges, or lines meet, often used to describe the corner point of a polygon or the peak or trough of a parabola.