Which One of the Following Terms Applies to an Option

question 60

Multiple Choice

Which one of the following terms applies to an option that has an office building as its underlying asset?

• A)financial option
• B)liquid option
• C)fixed option
• D)real option
• E)concrete option

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Definitions:

Budget Constraint

Represents the combination of goods and services that a consumer can purchase given their income and the prices of the goods and services.

Bell Peppers

are a type of large, mild pepper that comes in various colors, including red, yellow, orange, and green, commonly used in cooking for their sweet flavor.

Budget Constraint

The limitation on the consumption bundles that a consumer can afford based on their income and the prices of goods or services.

Income

The monetary payment received for work or through investments, pensions, or subsidies, used for consumption and saving.