The Act Where an Owner of an Option Buys or Sells

question 32

Multiple Choice

The act where an owner of an option buys or sells the underlying asset is called ______ the option.

• A)exercising
• B)striking
• C)opening
• D)splitting
• E)strangling

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Definitions:

Vault Cash

Physical money that is held in banks' vaults and ATMs, used to meet the bank's obligations to depositors.

Federal Reserve Bank

One of the 12 regional banks that, together with the Board of Governors, make up the Federal Reserve System, which serves as the central banking system of the United States.

Treasury Notes

Short- to medium-term debt obligations issued by a national government with fixed interest rates and maturities ranging from one to ten years.

Federal Reserve System

The central banking system of the United States, responsible for monetary policy, regulation of member banks, and ensuring stability of the financial system.