Which One of the Following Statements Correctly Describes Your Situation

question 29

Multiple Choice

Which one of the following statements correctly describes your situation as the holder of a European call option?

• A)You are obligated to buy if the option is exercised.
• B)You have a right to sell.
• C)You have a right to buy but only on the expiration date.
• D)You are obligated to sell if the option is exercised.
• E)You have a right to buy at any time before the option expires.

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Definitions:

GDP

Gross Domestic Product, the total monetary value of all goods and services produced within a country's borders in a specific time period, used as a broad measure of economic activity.

Per Capita GDP

The gross domestic product of a country divided by its population, giving an average economic output per person.

Real GDP

Gross Domestic Product adjusted for inflation, measuring the value of goods and services produced by an economy in a specific period accounting for changes in price level.

Trade Deficits

A situation where a country's imports of goods and services exceed its exports, resulting in a net outflow of domestic currency to foreign markets.