A Cash-Settled Option Is Defined as an Option Which Does

question 15

Multiple Choice

A cash-settled option is defined as an option which does which one of the following?

• A) requires a cash deposit upon purchase
• B) has a foreign currency as its underlying asset
• C) has the U.S. dollar at its underlying asset
• D) entails a cash payment to the holder upon exercise
• E) offers the option to either deliver the underlying asset or a cash payment

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Definitions:

Angular Unconformity

An unconformity (ancient erosion surface) in which the older, underlying strata dip more steeply or at a different angle than the younger, overlying strata.

Landscape Surface

The visible top layer of the earth's crust, including its physical features such as mountains, valleys, and plains.

Lithification

The conversion of unconsolidated sediment or volcanic ash into a coherent, solid rock, involving processes such as compaction and cementation.

Sedimentary Layers

Layers of rock or soil with internally consistent characteristics that distinguish them from contiguous layers.