Which of the Following Is NOT a Feature of Option

question 73

Multiple Choice

Which of the following is NOT a feature of option contracts?

• A) The buyer does not have an obligation to proceed with the contract
• B) The writer of the contract receives a fee
• C) The price of the designated asset is determined at the beginning of the contract
• D) The right to buy is called a put option

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Definitions:

British Political Authority

The legal and institutional powers that govern the United Kingdom, encompassing the monarchy, Parliament, and other democratic structures.

American Political Authority

The legitimacy and power held by institutions and officials within the United States to create, enforce, and interpret laws and policies.

Declaration of Independence

The document adopted on July 4, 1776, by the Second Continental Congress, declaring the Thirteen American Colonies independent from British rule.

Second Continental Congress

The convention of delegates from the Thirteen Colonies that started meeting in the spring of 1775, soon after the outbreak of the American Revolutionary War, which eventually declared independence.