Which One of the Following Statements Correctly Describes Your Situation

question 29

Multiple Choice

Which one of the following statements correctly describes your situation as the holder of a European call option?

• A)You are obligated to buy if the option is exercised.
• B)You have a right to sell.
• C)You have a right to buy but only on the expiration date.
• D)You are obligated to sell if the option is exercised.
• E)You have a right to buy at any time before the option expires.

---

Definitions:

Physiological Dependence

A condition in which the body has adapted to the presence of a substance, leading to withdrawal symptoms when the substance is reduced or not used.

Heart Attacks

Medical emergencies that occur when the flow of blood to the heart is blocked, often by a blood clot, causing damage to heart muscle.

Psychological Dependence

A condition in which an individual feels compelled to continue using a substance due to emotional or psychological needs.

Mental Craving

A strong emotional or psychological desire or need, often for a specific substance or experience.