Option Buyers

question 93

Multiple Choice

Option buyers:

• A)are not required to make margin payments
• B)must own the underlying shares
• C)must make margin payments to ensure they can meet their obligations
• D)stand to lose much more than the option premium.
• E)None of these are correct.

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Definitions:

Archaeopteryx

An extinct genus of bird-like dinosaurs that is considered by many to be the earliest known bird, illustrating the transition between non-avian dinosaurs and birds.

Homologous Structures

Anatomical features in different species that share a common ancestral origin despite possibly serving different functions.

Comparative Anatomy

The study of similarities and differences in the anatomy of different species to understand their evolutionary relationships.

Vestigial

Referring to an organ or part of the body that has become functionless or reduced in size through evolution, such as the appendix in humans.