In the Option Markets,the Price Specified in the Contract at Which

question 38

Multiple Choice

In the option markets,the price specified in the contract at which the buyer of the option can buy or sell the specified commodity or financial instrument is called the:

• A) call price.
• B) exercise price.
• C) settlement price.
• D) spot price.

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Definitions:

Piaget

Pertains to Jean Piaget, a Swiss psychologist renowned for his groundbreaking contributions to the study of child development and cognitive theory.

Formal Operational

A stage in Jean Piaget's theory of cognitive development where individuals (typically 12 years and older) gain the ability to think abstractly, reason logically, and use deductive reasoning.

Abstract Principles

Fundamental ideas or theories that are theoretical in nature and not based on specific instances.

Hypothetical Possibilities

Imagined scenarios or conditions that can be considered when reasoning or planning without necessarily having a basis in reality.