There Are Two Types of Regular Options (Calls and Puts)

question 20

Multiple Choice

There are two types of regular options (calls and puts) .How many types of compound options are there?

• A) Two
• B) Four
• C) Six
• D) Eight

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Definitions:

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a specified time period.

Marginal Revenue

The additional revenue that a firm generates from selling one more unit of a good or service.

Average Total Cost

The total cost to produce a given quantity of output divided by the number of units produced, representing the per-unit cost of production.

Marginal Cost

The increase or decrease in the total cost that arises from producing one additional unit of a good or service.