The Option That Gives the Owner the Right to Buy

question 6

Multiple Choice

The option that gives the owner the right to buy an asset at a fixed price at or before a certain date is called a

• A) put option
• B) call option
• C) parity option
• D) swaption

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Definitions:

Null Hypothesis

A default hypothesis that suggests no significant effect or difference; used as a starting point in hypothesis testing.

Service Time

The duration in which a service is provided to a customer, from the beginning of the service delivery to its conclusion.

Significance Level

A threshold or probability below which an observed result is considered statistically significant, often denoted by alpha (α).

Coefficient of Determination

A statistical measure, often denoted as R^2, that indicates the proportion of the variance in the dependent variable that is predictable from the independent variables.