A Call Option on a Futures Contract

question 7

Multiple Choice

A call option on a futures contract:

• A)gives the buyer the right to assume a sold position in the futures.
• B)gives the seller the right to assume a sold position in the futures.
• C)gives the buyer the right to assume a buy position in the futures.
• D)gives the seller the right to assume a buy position in the futures.

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Definitions:

Delta Connected Motor

A method of connecting a three-phase motor where the ends of each coil are connected in a triangle or delta configuration, allowing for the use of a high voltage network.

High Voltage

Refers to electric potential at a level high enough to pose a hazard to humans, typically classified as more than 1000 volts in alternating current (AC) or 1500 volts in direct current (DC).

Capacitor-start

A motor design that includes a capacitor in the starting circuit for improved startup torque, commonly used in single-phase AC motors.

Capacitor-run Motors

Electric motors that use a capacitor in their circuit for the purpose of running efficiently, often found in HVAC systems and smaller machinery.