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Using an Option Contract to Buy or Sell the Underlying

question 36

Multiple Choice

Using an option contract to buy or sell the underlying asset is called ________ the option.

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Definitions:

Monthly Payments

Regular payments made towards a loan or mortgage each month.

Compounded Semi-Annually

Calculation of interest on the initial principal and the accumulated interest over the first 6 months repeated every half year.

RRSP

Registered Retirement Savings Plan, a Canadian investment vehicle that allows for tax-deferred savings towards retirement.

Contributions

Money that individuals or entities provide towards a common pool or fund, often for purposes like retirement savings plans or investment funds.

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