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If a Party Has the Right but Not the Obligation

question 39

Multiple Choice

If a party has the right but not the obligation to buy the underlying asset,the party has a(n) _____________________;if the party has right but not an obligation to sell the underlying asset,the party has a:


Definitions:

Tapioca Pudding

A sweet dessert made from tapioca pearls, milk or cream, sugar, and often flavored with vanilla, coconut, or other ingredients.

Opportunity Cost

is the value of the best alternative that is forgone in making any choice or decision, representing the benefits an individual, investor, or business misses out on when choosing one alternative over another.

Explicit Cost

The direct, out-of-pocket expenses incurred by a company or individual, contrasting with implicit costs which represent opportunity costs.

Sunk Costs

Expenses that have already been incurred and cannot be recovered, which should not affect future financial decisions.

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