A Compound Option Is

question 31

Multiple Choice

A compound option is:

• A) an American call option written on an European call option
• B) an American put option written on an European put option
• C) an option that will be rolled forward when date of expiry takes effect
• D) none of these choices

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Definitions:

Probability

The probability or possibility of an event happening.

CFO's Salary

The compensation awarded to the Chief Financial Officer of an organization, encompassing salary, bonuses, and other financial benefits.

Positively Skewed

Describes a distribution of data where most values are concentrated on the left, with a long tail extending to the right.

Probability

The likelihood of an event's occurrence assessed by a numerical scale extending from 0 to 1.