The Major Difference Between Options on Real Assets and Options

question 16

Multiple Choice

The major difference between options on real assets and options on financial assets is that options on:

• A) financial assets are costly.
• B) financial assets have a higher probability of positive payoff.
• C) real assets are implicit, rather than explicit.
• D) real assets are not influenced by price volatility.

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Definitions:

Inkjet Printers

Printers that create images by propelling tiny droplets of liquid ink onto paper or other printable surfaces, producing high-quality text and images.

Encoder Software

Computer programs designed to convert data into a particular format, often for the purpose of standardization or compression.

Rejected Claims

Insurance claims that have been refused approval by insurers due to errors, ineligibilities, or discrepancies.