Which Two of the Following Are Key Differences Between an Option

question 20

Multiple Choice

Which two of the following are key differences between an option contract and a forward contract?
I.option contracts can be resold but forward contracts cannot
II.the option price is determined at settlement while the forward price is determined when the contract is initiated
III.the rights and obligations of the buyer
IV.cost when contract initiated

• A)I and III only
• B)II and IV only
• C)III and IV only
• D)I and II only
• E)II and III only

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Definitions:

Mixed-Modelling Strategy

An approach that combines various models, methods, or theories to address complex problems or analyze data in research.

Behavioural Generalization

The application of learned behaviors to different but related situations or contexts beyond the initial learning environment.

Role Play

An interactive training technique where participants act out scenarios or roles to practice skills, understand perspectives, or solve problems in a simulated environment.

Behaviour Modelling

A training method that demonstrates desirable behaviors in practice as a way for learners to observe and imitate.