Use the Figure for the Question(s)below

question 48

Multiple Choice

Use the figure for the question(s) below.
-This graph depicts the payoffs of a

• A)a long position in a put option at expiration.
• B)short position in a call option at expiration.
• C)a short position in a put option at expiration.
• D)a long position in a call option at expiration.

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Definitions:

Accord and Satisfaction

A legal settlement where an agreement is made to satisfy a debt or claim, followed by the actual performance of this agreement, which discharges the original claim.

Accord and Satisfaction

A legal agreement where a dispute is settled by the parties involved, wherein one agrees to accept less than what's owed and the other agrees to forgive the remainder.

Past Consideration

In contract law, the concept that an act or benefit provided before and independently of a promise does not constitute valid consideration for the promise.

Accord and Satisfaction

A legal contract wherein a dispute is settled by the parties involved agreeing to provide and accept something different than originally owed.