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:

Neptune

The eighth planet from the Sun in our solar system, known for its deep blue color and strong winds.

Genus

A term that denotes a general category or class under which species and individuals are subsumed, often used in hierarchical classification.

Species

A class of things regarded as a subcategory of a wider class (a genus).

Box

A container often made of cardboard or wood, used for storage or shipping.