If You Are the Owner of a European Call Option,you

question 101

Multiple Choice

If you are the owner of a European call option,you:

• A)are obligated to buy the specified assets prior to the option's expiration.
• B)have the right to sell the specified assets at the set price at any time up to and including on the expiration date.
• C)have the right to buy the specified assets at the set price only on the expiration date.
• D)are obligated to sell the specified assets at the set price if the option is exercised.
• E)have the right to buy the specified assets at the set price at any time prior to the option's expiration.

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Definitions:

Variances

Statistical measures of the dispersion of data points in a dataset, indicating how far each data point in the set is from the mean.

Portfolio

A portfolio of investment vehicles, including equities, fixed income, raw materials, money, and money-like assets, along with mutual funds and ETFs.

Covariance

A measure indicating the extent to which two variables change in tandem.

Variances

Statistical measures that represent the extent to which a set of numbers is spread out from their average value.