An Option Creates the Obligation for Delivery of the Underlying

question 29

True/False

An option creates the obligation for delivery of the underlying asset at a pre-determined point of time in the future.

---

Definitions:

Evaluate

Finding out the numerical value associated with an expression.

Ordered Pairs

A pair of elements arranged in a specific order, typically (x, y), representing coordinates on a Cartesian plane.

Function

A mathematical relation between a set of inputs and a set of possible outputs, where each input is related to exactly one output.

Evaluate

The process of determining the value of an algebraic expression by substituting numbers into the variables and performing the operations.