The Major Difference Between Options on Real Assets and Options

question 22

Multiple Choice

The major difference between options on real assets and options on financial assets is that options on:

• A)Financial assets are costly
• B)Financial assets have a higher probability of positive payoff
• C)Real assets are implicit, rather than explicit
• D)Real assets are not influenced by price volatility

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Definitions:

Landscape

In printing and digital formatting, a page or screen orientation where the width is greater than the height.

Column Headings

The titles or labels located at the top of columns in tables, spreadsheets, or databases, used to indicate the type of data stored in each column.

Relative Cell References

In spreadsheet software, a cell reference that adjusts automatically when the formula containing it is moved to another cell.

Formula Location

The specific cell or range of cells in a spreadsheet where a mathematical calculation is performed.