Examlex
Suppose X has an F distribution.Which of the following is true?
Option Contract
A financial derivative that represents a contract sold by one party to another, offering the buyer the right, but not the obligation, to buy (call) or sell (put) a security at an agreed-upon price within a certain period of time.
Forward Contract
An agreement between two entities that is not regulated, outlining the purchase or sale of an asset at a predetermined future date for a price that is decided upon at the current time.
Obligation
A legal or financial duty to make a payment or fulfill a contract.
Futures Contracts
Financial contracts obligating the buyer to purchase an asset, or the seller to sell an asset, at a predetermined future date and price.
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