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:

Robinson and Swanson

Robinson and Swanson may refer to researchers or a collaborative project, specific details of which would be based on the context in which they are mentioned, as no definitive information is provided.

Distinctively

In a way that is characteristic of a specific person, thing, or group and sets it apart from others.

Eyewitness

Refers to an individual who personally sees or experiences an event, and can therefore report their observations.