At Maturity in an Asset-Or-Nothing Option Written on a Stock

question 32

Multiple Choice

At maturity in an asset-or-nothing option written on a stock,

• A)The holder has a choice of receiving the asset or nothing in exchange for paying the strike price.
• B)The holder receives the stock in exchange for the strike price if the option should finish in-the-money,and nothing otherwise.
• C)The holder receives the stock without paying anything in exchange if the option should finish in-the-money,and nothing otherwise.
• D)The holder receives the stock in exchange for a pre-specified consideration (which could differ from the strike price)if the option should finish in-the-money,and nothing otherwise.

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Definitions:

Capital Gains Yield

Capital gains yield is the rise in price of an investment or asset, expressed as a percentage of the initial purchase price.

One-year Return

The total percentage return on an investment over a period of one year.

Dividend

A portion of a company's earnings distributed to shareholders, usually in the form of cash or stock.

PDQ Stock

is not a widely known key term and might refer to a specific stock symbol or an abbreviation within a particular context. Assuming it's not widely recognized, the answer would be NO.